Adjustment for Increased RoyaltiesThe additional 1.5% of royalties at Kipushi amounts to an additional $147.75 million charge to the Company. Doing the conversion from undiscounted to discounted: For $1.10 zinc, NPV8 is reduced to $612,7 million from $683 million. At $1.00 zinc, Macquarie's five year target price, NPV8 is reduced to $441.5 million from $508 million. Remember, Gecamines gets 32% of that.
A 12 Mtpa mine at Platreef would clear at least $624 million a YEAR AFTER TAX based on feasibility price assumptions. I say at least, because costs are reduced substantially by economies of scale, moving up from 4 to 12 Mtpa. That's based on profit of $52 a tonne. This is AISC, includes Capex, sustaining capital, operational and transactional costs, applicable royalties, taxes, the works. And the best part is the SA government will appreciate the business. That would be nice for a change.