Econonomics of Copper/Cobalt project
The base case updated model shows that the undiscounted cumulative cash flow for the tailings project is US$593.4 million, with Simberi’s 51% interest being US$366.4 million. Project internal rate of return (“IRR”) is 37% before tax. Project net present value (“NPV”) at a 20% discount rate is US$116.3 million. Payback period is approximately 2.25 years. The base case uses a Copper price of US$ 1.75/lb and a Cobalt price of US$13/lb.