NPV8 = $11.50 Cad share for 18Mtpa mineThat’s for $3.00 copper, 80 cent CAD/USD. For today’s current price of $2.75 lb Cu:
NPV8 = $9.40 Cad share
These are discounted after tax values. After tax cash flow is way higher. At the current copper price of $2.75 lb, cash flow is $40.36 B CAD for life of mine. However, if copper rises to $4 lb, this increases to $80 B CAD. That is a truly astronomical value. This NPV is just for the K-K project. Kipushi and Platreef will add additional value. For investment purposes, NPV8 of $9.40 CAD share @ $2.75 lb copper is probably the best value to use. It’s conservative without going overboard. After tax NPV8 is a fairly hefty hurdle; one most mines are unable to achieve. This is what I mean when I said what is true in general for the often marginal mining industry, is not necessarily true in the particular. Kamoa-Kakula is sui generis, in a class all it’s own.