GREY:WFEMF - Post by User
Comment by
billlcon Apr 23, 2012 11:49am
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Post# 19824324
RE: RE: 2.2 year break even point...
RE: RE: 2.2 year break even point... ...CJ, good question about the APT price assumption. I am trying to recreate the NPV equation. So far 1200000 tons of ore/yr at $61.84/T gives an operating cost of $74.21/yr. Sustaining the mine cost of $58.2m spread over 11.5 years is $5.06m/yr giving total costs of $79.27/yr.
...1200000 TPA ore at .425% grade gives 5100 TPA W03. Times 80% recovery gives 4080 TPA W03 or 408000 MTU/yr. Checks out with rounding. Now we need the sale price of an MTU to continue. Also the tax rate. Thanks in advance for information. Search starting.
...P.S. A breakeven of 2.2 years of the capital cost of $151m indicates an annual net cash inflow of $68.6m per year for the first wo years. Discounting that rate at 8% for 11.5 years using the annuity formula gives a value of $503.6m. Subtracting $151m capital cost gives an NPV of $352.6m, a bit shy of the $400m in the headline. But the cash flows may not be perfectly level.