largo looks interesting
According to their 2013 Economic Assessment page 53, Largo used market prices for V2O5 of US $14.04 per kilogram and US $28.01 per kilogram FeV plus US $70.00 per tonne of iron ore sold FOB mine site.
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Omitting the iron ore and converting V205 and FeV to US $ per pound gives US $ 6.37/lb for the V2O5 and US $12.70/lb for the FeV. Then applying the 2017 estimated Industry Price of US $11.00 for V2O5, it gives a 1.73 greater V2O5 price than that used in Largo's Economic Assessment. Also if the 2017 FeV price increased 1.73 times, it might sell for US $21.97/lb as FeV is a closely related to V2O5.
If the Industry Reports for the estimated 2017 price for V2O5 are correct, it could increase Largo's “Net After Tax Profit” considerably for the years when Largo mines the higher V2O5 grades from 2017 thru 2023. This also assumes that prices hold at US $11 for V2O5 and US $21.97 for FeV.
If Largo were to increase the ore material processed from 2024 and the following years when Maracas' ore grades start declining the higher production would naturally lower Maracas' projected 29 year life, but allow for possible increases in annual after tax profits which can be applied to develop other Maracas deposits and/or provide funds to start up other projects, such as the Norther Dancer Project.
If one takes the Before Tax Cashflow from Table 1-18 pages 54 and 55 and multiplies it by 1.73 and removes an estimated tax of 12.5% for Year 4 thru Year 10 the “Net After Tax Profit” (NATP) could be as given below.
Year 4 (124,110 x 1.73)0.875 = $187.9M (NATP)
Year 5 (142,183 x 1.73)0.875 = $215.2M (NATP)
Year 6 (145,460 x 1.73)0.875 = $220.2M (NATP)
Year 7 (144,722 x 1.73)0.875 = $219.1M (NATP)
Year 8 (130,453 x 1.73)0.875 = $197,5M (NATP)
Year 9 (127,211 x 1.73)0.875 = $192.6M (NATP)
Year 10 (129,231 x 1.73)0.875 = $196.5M (NATP)
It seems from Table 1-18 that estimated taxes increase after Year 10???