Generation Mining Ltd T.GENM

Npv price sensitivity

[Sacks48]

PALLADIUM PRICE (US$/oz)	1,000	1,250	1,500	1,725	1,850	2,000	2,500
NPV 6% (C$ M)	356	601	847	1,068	1,190	1,337	1,831
Payback (years)	4.3	3.2	2.6	2.3	2.1	2.0	1.6
IRR (%)	14.8%	20.2%	25.3%	29.7%	32.1%	34.8%	43.7%

 

COPPER PRICE (US$/lb)	2.00	2.50	3.00	3.20	3.50	4.00	4.50
NPV 6% ($ M)	792	907	1,022	1,068	1,137	1,251	1,365
Payback (years)	2.7	2.5	2.3	2.3	2.2	2.1	2.0
IRR %	24.7%	26.8%	28.9%	29.7%	30.9%

We are still ok even at these levels.

[Supertweety]

I think management wants said copper at $4.50  a pound pays all the operating costs so the palladium and platinum are all pure profit. 

[Supertweety]

At $4.50 a pound copper, even if platinum and palladium achieve price parity at $1000 an ounce. That calculates to over $200 million profit per year, which is over $1.00 earnings per share. No concerns here with the palladium price drop.