RE:RE:NPV question for MariuszMariousz, not sure if a Major will pay 150%. i will assume even 50% to be safe. What we have on our side is the copper prices higher and potentially the higher grade. In that case, I was wondering if we reach 2.5 to 3 bill in NPV.
MariuszSkonieczny wrote: Before I answer it, let me say the word historic three times. Historic, historic, historic.
The estimated NPV does not include any potential from Brasiles. So you can let your imagination run wild here.
Yes, the NPV could be much higher. South and North could add more tonnage. It could also add better grade. We won't know until drills resutls are released.
Also, everybody likes to talk about 50 percent of NPV.
For simplicity, lets say the NPV is $2 billion on North and South. But Oroco hits some good grades and tonnage in Brasilez. Is the major going to pay 50 percent of NPV from North and South. No. The major might pay 150 percent of such NPV because Brasiles has huge exploration potential.
That's why comparisons and rules of thumbs are useful but not useful at the same time. We have to understand the asset with its three zones and how it could impact major's cash flow for 20 to 30 years. We have to put ourselves in the shoes of the majors and how they will see this assets and how this asset will help them satisfy copper demand.