RE:RE:StockCopper $2.33B CAD NPV seems very small only if you understand how the NPV is calculated.
1M ounces mined in year 27 is "valued" at only 12% of the 1M ounces mined in year 1 at a 12% discount factor....
Undiscounted cash flow is more like $11B i believe on Phase 1 based upon base case metal prices. This is the FS. Using spot it is MUCH higher.
Most likely, the capex in the below example (and in most mining projects) tends to have overruns..so that $3B capex is quite likely more like $4-$5B....BUT the value of 1M ounces in year 27 being 12% of the value of 1M ounces in year 1 is ridiculous in and of itself considering Gold has been around for thousands of years and is the BEST wealth preservation in the world. I can guarantee you...in year 27 1M ounces of gold will have same purchasing power (wealth) as 1M ounces today...but in the ridiculous NPV calc it only has 12%. 1M ounces in year 9 is only 1/2 the value of 1M ounces in year 1.....which as we all know based upon the 72 rule (ie - 72 divided by discount factor) is how long it takes to double (or halve in this case).
In addition, as has been noted, this Phase 1 is only 1/3 of the total resource!!!!!
So my point is...even if capex is $4B....there is LOTS of upside on Casino to whoever acquires it!
It is the most stupid thing in the world to assume 1M ounces mined today or 50 years from now is of different "value"! History tells us they are the SAME value over time with very similar purchasing power over time.
| Year | CF | Discount factor | NPV |
| 0 | $ (3.00) | 100% | $ (3.00) |
| 1 | $ 0.50 | 93% | $ 0.46 |
| 2 | $ 0.50 | 86% | $ 0.43 |
| 3 | $ 0.50 | 79% | $ 0.40 |
| 4 | $ 0.50 | 74% | $ 0.37 |
| 5 | $ 0.50 | 68% | $ 0.34 |
| 6 | $ 0.50 | 63% | $ 0.32 |
| 7 | $ 0.50 | 58% | $ 0.29 |
| 8 | $ 0.50 | 54% | $ 0.27 |
| 9 | $ 0.50 | 50% | $ 0.25 |
| 10 | $ 0.50 | 46% | $ 0.23 |
| 11 | $ 0.50 | 43% | $ 0.21 |
| 12 | $ 0.50 | 40% | $ 0.20 |
| 13 | $ 0.50 | 37% | $ 0.18 |
| 14 | $ 0.50 | 34% | $ 0.17 |
| 15 | $ 0.50 | 32% | $ 0.16 |
| 16 | $ 0.50 | 29% | $ 0.15 |
| 17 | $ 0.50 | 27% | $ 0.14 |
| 18 | $ 0.50 | 25% | $ 0.13 |
| 19 | $ 0.50 | 23% | $ 0.12 |
| 20 | $ 0.50 | 21% | $ 0.11 |
| 21 | $ 0.50 | 20% | $ 0.10 |
| 22 | $ 0.50 | 18% | $ 0.09 |
| 23 | $ 0.50 | 17% | $ 0.09 |
| 24 | $ 0.50 | 16% | $ 0.08 |
| 25 | $ 0.50 | 15% | $ 0.07 |
| 26 | $ 0.50 | 14% | $ 0.07 |
| 27 | $ 0.50 | 13% | $ 0.06 |
| 28 | $ 0.50 | 12% | $ 0.06 |
| | $ 11.00 | | $ 2.53 |