Platreef Metals Prices 1. Here is Platreef top line revenue using the metals price assumptions and forecast production from the 2017 DFS.
Pt 1600 X 214,000 = 342,400,000
Pd 815 X 219,000 = 178,485,000
Au 1300 X 30,000 = 39,000,000
Rh 1500 X 14,000 = 21,000,000
——————————
580,885,000 USD Revenue
2. 351 Cost per oz. of 3PGE + AU X 477,000 oz = 167,427,000 USD Cost
Revenue - Cost = FCC 413,458,000 USD
X 1.3 = 537,495,400 CAD
X .64 ownership = 343,997,056 CAD
X .65 tax = 223,598,086 CAD cash flow attributable to IVN
3. Incidentally here are the revenues for Ni and Cu not included above because they are applied as credits in calculating the $351 cost per oz. of 3PGE + Au
Ni 8.90 X 21,000,000 = 186,900,000
Cu 3.00 X 13,000,000 = 39,000,000
————————
225,900,000 USD
**************************************************************************************************************
4. Here is topline revenue using metals prices at Friday close
Pt 1022 X 214,000 = 218,708,000
Pd 2295 X 219,000 = 502,605,000
Au 1556.7 X 30,000 = 46,701,000
Rh 7700 X 14,000 = 107,800,000
————————
875,814,000 USD
5. Note that we have lost ground on Ni and Cu credits in the amount of 57,230,000 USD since the present prices for the base metals are below the ones assumed in the 2017 DFS.
Ni 6.28 X 21,000,000 = 131,880,000
Cu 2.83 X 13,000,000 = 36,790,000
—————-
168,670,000 USD (compared to 225,900,000 at DFS prices)
So add this deficit to costs at present day prices
$351/oz. X 477,000 + 57,230,000 = 224,657,000 USD cost
875,814,000 Revenue - 224,657,000 Cost = 651,157,000 USD free cash
X 1.3 = 846,504,100 CAD
X .64 ownership = 541,762,624 CAD
X .65 tax = 352,145,705 CAD cash flow attributable to IVN
This is a 128,547,619 CAD (%57) increase in bottom line free cash flow attributable to IVN resulting solely from the changes in metals prices since the July 2017 DFS.
6. Increases in revenue from Pd (+324,120,000 USD) and RH (+86,800,000 USD) have been significant.
Decrease in revenue from Ni ( -55,020,000 USD) and Pt (-123,692,000 USD) substantial.
Negligible delta from Cu and Au.
The %64 ownership and %35 tax factors really cut into our profits such that only %41 of free cash from Platreef is attributable to IVN.
7. Just for fun here is upside potential derived from further possible changes in metals prices over the next two years or so from today until production. It is quite plausible that we can get over $100 million USD each from Pt if it rises $500/oz. and Ni if it rises $5/lb. Cu and Rh can chip in a bit. No wild guesses as to what Pd and Au will do - assume static.
Pt +500 USD/oz. = +107,000,000 USD
Pd no change
Au no change
Rh +1500 USD/oz. = +21,000,000 USD
Ni +5.00 USD/lb. = +105,000,000 USD
Cu +.75 USD/lb. = +10,000,000 USD
———————
243,000,000 USD
Add this to present day topline revenue from section 4 above
875,814,000 + 243,000,000 = 1,118,814,000 USD
less costs of 224,657,000 = 894,157,000 USD FCC
X 1.3 = 1,162,404,100 CAD
X .64 = 743,938,624 CAD
X .65 = 483,560,105 CAD FCC attributable to IVN
A further increase of 131,414,400 CAD or +%37 in FCC attributable to IVN from plausible metal price increases over the next two years from today. An increase of 259,962,019 CAD or %116 (more than double!) from the 2017 DFS scenario.
It is ultra sweet that costs remain static while revenues can jump up substantially from increases in metals prices. Pt and Ni are where additional positive delta will come from.
It is a bummer that we realize only %41 of project FCC due to partial ownership and taxation.