RE:RE:RE:RE:RE:The greatest "no brainer" investments of your life....
metalhead666 wrote: If you're going to add in "blue sky" potential then you have to subtract "mean reversion" in the price of copper and gold, and other factors that add to costs or deduct from revenue in the future.
Exactly right, and why the PEA/FS will use a "base case" of something like 1500 Gold and 3 Copper. In other words, show this project is economical even if prices collapse. Detractors see Casino as an "optionality play," meaning it is ONLY economical (and thus will only look attractive) at sustained prices of 2k Gold & 4.5+ Copper.
Please remember too all, the real goal here is to show shorter payback, better IRR and better strip ratio. Not necessarily to see how high we can get the NPV, nice as that'll be to see.