GREY:PGDIF - Post by User
Comment by
ekimon Feb 13, 2017 11:10am
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Post# 25837228
RE:THE ROAD
RE:THE ROADThe road is a minor irritation.
The project economics could pay for that road 5 times over and still make a penny..so the cost isn't my irritation.
My irritation is againt he timeline with the deep water port.
If the current PEA timeline makes the road costs $95 to $100 million...what does the road cost if it doesn't get constructed until right after the commercial port opens up for the public?
$70 to $80 million? or cheaper?
That could be $20 to $30 more million in NPV to the project at the cost of having to discount the economics a couple more years.
NPV at $500 million and discount it 4% per year for delay in current plan --> $40 million.
So maybe a net loss of $10 million to the project by deferring the road to commerical port availability. Having the commercial port up and running is a de-risk milestone.
LONG...PGD
EKIM