As predicted, the FS is a complete joke.
- Based on this table, the NPV10% will yield a negative result if:
- - Zinc price falls below 80% of base case with all else being equal; or
- - Lead price falls below 70% of base case with all else being equal; or
- - Capital costs exceeds 130% of base case with all else being equal; or
- - Operating costs exceeds 130% of base case with all else being equal
In other words, if Zinc falls to
.88 lb (80% of $1.10 lb), the entire project has negative NPV10. And that optimistically assumes Lead remains at $1.10 lb.
The so-called sensitivity analysis CONSPICUOUSLY fails to show what happens if both Lead and Zinc fall below their optimistic $1.10 "base case" (as seems almost certain from my perspective). Of course, we all know why they don't show those numbers - because it would show Pine Point NPV10 is negative at/near current
.90 Zn/Pb metal prices (and yet the "base" case is higher than current prices - simply unbelievable!).
And let's not forget that assuming 10% discount is very optimistic. If TAM can finance at 15%, they'll be lucky.
I'm not surprised that Peggy and The Rummy are promoting this play considering their huge self interest via their obscenely generous royalty they've dealt themselves, but the rest of the toadies have no excuse...I guess anything for a paycheck, eh?