OTCPK:CODMF - Post by User
Comment by
nerotulip2013on Mar 10, 2014 2:37pm
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Post# 22303832
RE:NPV?
RE:NPV?Assuming 10 year mine life , 1MM oz starting 2018, recovery rate 67%, 10000 tpd, net income $150 per oz, cost of capital 10%, the PV of the income stream is $42 MM...BUT you need to subtract the mine development, mill construction and equipment costs, maybe $20 MM, then the Net Present Value becomes $22 MM. Assume no taxes. If you use a discount rate of 15%, you get an NPV of $8 MM. More gold and higher grade would change the picture.