We need an explanation from FT
Reviewing the PEA for the RSM done by SRK in April 2014, I find some assumptions and results that should have raised red flags for FT management to consider.
First of all, metal prices were way optimistic and not current (Ag at $20/oz).
Most importantly, SRK Economic analysis indicated after-tax IRR of 73.2% and NPV (6%) of US$58.8 million. (source: SRK PEA page 8)
Why would FT invest more than $60 million in RSM if the NPV is $58.8 at Ag price of $20/oz? This does not make any sense!!