RE: RE: Old Article, Do Numbers Still Work? i calculated with a iron ore selling price of $135 per tonne, opex of $40 per tonne (more conservative), a 15 year mine life, 5% interest rate, fully diluted shares, subtracted 40% from operative profit (10% administrative costs, 30% taxes), a capex share of $52m and 20% of $22m development costs:
for 2013 using a 2mtpy production for the DSO project:
NPV of $182m (for NML's 20% JV) with a NPV/share of $0.94 and using a factor of 10 a P/E per share of $1.17
for 2015 using a 6mtpy production for the DSO project:
NPV of $ $655m (for NML's 20% JV) with a NPV/share of $3.37 and using a factor of 10 a P/E per share of $3.52
if we recalculate the IRR from feasibility where a selling price of $64.50 has been used:
the IRR for a 6mtpy production on 100%-ownershipd-basis would be 58,7% with a NPV of $2,345m with a 8% discount rate