NPV Calculation # 3 (Includes CH6 open pit and CH7 open pit only)
*Information in this current blog is based on information obtained up to mid 2018 and should be considered legacy at this time and should no longer be relied upon.*
This will comparative to the PEA to be released in early 2016
Discounted at 7% = CAD$900Million
Discounted at 10% = CAD$675Million
Discount at 34% = Current valuation of company.
Discount at 73% = Breakeven
Tonnage:
CH-6
5 million down to 250 metres (open pit)
CH-7
6 million down to 250 metres (open pit)
Carat Value CAD$250 per carat for all pipes (Will be updated after bulk sample)
Grades:
CH-6 - 2.58 cpt
CH-7 - yr 1 - 1.2 cpt, yr 2 - 1.0 cpt, yr 3 and beyond - 0.9 cpt (Domain 5 will be mined out in first year)
Mill target production - 1 million tonnes per year
Operating cost - CAD$75/tonne (open pit
Total tonnage - 11.0 million - Mine life - 11 years
Year 1 to 5 - CH-6 open pit
Year 6 - CH7 high grade
Year 7 - CH7 mid grade
Year 8 to 11 - CH7 low grade
Revenue by year:
1 to 5 - 645M per year
6 - 300M
7 - 250Mr
8 to 11 - 225M
Operating expense per year:
1 to 11 - $75 million
$150 million tax loss carry forward
Tax rate 40%
Royalty 2%
Capital cost
1 - $700 million
year 1 = 645 - 700 - 75 = loss 130 million
year 2 = 645-75 = 570 - royalty = 560 million - (tax on 560-150-130*.4 = 112) = $450 million
year 3 = 645 - 75 = $570 x 0.58 = $330 million
year 4 = $330 million
year 5 = $330 million
year 6 = (300 - 75 )*.58 = $130.5 milllion
year 7 = (250 - 75 )*.58 = $101.5 million
year 8 to 11 = (225 - 75)*.58 = $87 million per year
year 21 = clean up cost $25 million
year 1 - 2020
Exploration, bulk sample costs before then:
2016 15 million
2017 15 million
2018 30 million
2019 30 million
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