Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

Free
Message: NPV / IRR of SC

Hey MoneyK, I have taken your previous guess work on calculating the NPV of SC.  I left the Copper, Gold, Silver, Moly production numbers the as they don't seem to have changed much.   I left the copper price at $3.15, Gold $1,300, Silver $17.50, and Moly $10.00.  Exchange rate is 0.77. Discount rate is 8%.

 This means that years 1-7 gross revenue is $1,650 Million Canadian.  But I used the new production of 8.66/t - so 133,000 tpd X 365 days = 48,545,000 tpy X $8.66 = $420 Million per.  This means a cash flow of $1,232 million C$.

For years 8-21 gross revenue is $1,371 Million Canadian.  Less cost of production $420 million = $950 Million C$. 

I assumed 4 years to build the mine - so the new $2,600 Million Cap Ex is spread over the first 4 years or $650 million a year.  

Using all these assumption I came with a NPV of just under $6 billion and IRR of about 29.5%.  This of course is befor Tax.  

Are my assumptions and the use of the numbers correct or at least in the in the ballpark?

Share
New Message
Please login to post a reply