RE:RE:RE:Takeover of Florida Canyon andre171 wrote: Do you consider the 168M cash flow from the 43-101 to be unreliable, or is its allocation dubious?
22.0 ECONOMIC ANALYSIS
22.1 Introduction
A financial analysis for FCM was developed by Argonaut and FCM using a discounted cash flow approach on a pre-tax and after-tax basis. The NPV was calculated from the cash flow generated by the project based on a discount rate of 5%.
This has been undertaken for both a Base Case using expected metal prices and a Mineral Reserve Case at the Mineral Reserve gold price. A sensitivity analysis for the pre-tax Mineral Reserve Case to assess the impact of variations of the capital costs, operating costs, and the gold metal selling price was undertaken.
22.3
Base Case Financial Analysis Summary
A financial analysis for FCM was developed by Argonaut and FCM using a discounted cash flow approach on a pre-tax and after-tax basis. The NPV was calculated from the cash flow generated by the project based on a discount rate of 5%. The pre-tax base case financial model resulted in an undiscounted cash flow of $187M with an NPV 5% of $141M. On an after-tax basis, the base case financial model resulted in an undiscounted cash flow of $169M with an NPV of $128M at a discount rate of 5%.
22.4
Mineral Reserve Case Financial Analysis Summary
An economic analysis of FCM using the financial model adjusted for Mineral Reserve reporting gold metal prices declared in this report of $1,800 per ounce gold was undertaken (note that silver credits were removed as silver is not part of the declared Mineral Reserve). The pre-tax Mineral Reserve price financial model resulted in an undiscounted cash flow of $81M with an NPV of $50M at a discount rate of 5%. On an after-tax basis, the Mineral Reserve financial model resulted in an undiscounted cash flow of $78M with an NPV of $47M at a discount rate of 5%. The minimal change in value between pre-tax and aftertax cash flows is a result of the utilization of current and projected tax attributes.
https://s22.q4cdn.com/115151820/files/doc_downloads/technical_reports/florida_canyon/fcgv-2024-07-12-technical-report-ni-43-101-florida-canyon.pdf