The challenge now is to see if nickel and copper increase. Have a read. Still researching Anon selling which is usually never good but most likely a new PP buyer.
Shakespeare project contains an
economic mineral reserve and is worthy of continued development through detailed
engineering and construction to produce 4,500 t/d of ore and subsequent concentrate for
sale”. At projected metal prices including nickel at an average of US$9.37/lb, the project is
projected to yield an after tax internal rate of return (“IRR”) of 22.6% (29.1% pre-tax IRR)
on an initial total capital cost of C$148,193,000. Net smelter revenue (“NSR”) is
$58.89/tonne and totals C$696,331,000 for the project. Total operating cost is
C$26.64/tonne milled. The undiscounted total annual cash flow (“NPV”) is C$169,581,000
and the NPV discounted at 8% is C$73,297,000. The project has a 7.2 year mine
production life. The economic analysis makes the assumption of a reversion of metal
prices from current levels to their 10-year historical median Canadian dollar prices,
expressed in 2007 terms. Current price levels are assumed to regress exponentially
toward the median, with a ‘decay’ half-life of three years. The resulting average prices over
the life of the project, expressed in 2007 dollars, are nickel US$9.37/lb, copper US$2.11/lb,
cobalt US$27.57/lb, platinum US$995.52/ounce, palladium US$342.49/ounce, gold
US$563.27/ounce. The base exchange rate for the economic analysis is taken from the
average of over 9 months of 2007, for a rate of C$1 = US
.9052.
FH