NPV and buyout price

Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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chops

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NPV and buyout price

posted on May 30, 2012 02:27PM

At the end of the day, we or Teck, needs new NPV and IRR numbers from the BFS. There have been various numbers put forward by CUU I believe - don't have the time to wade through all the old docs right now. From the old May 2011 Corporate Presentation which is still availabe online, the NPV at 8% discount before tax was $2.76B (NPV at 5% was $4.79B). So what is one quarter of that for the CUU share?

Prices of metals have changed since the Preliminary Feasibility pricing model, but copper was $3.12, gold $692 and silver $13. I assume that higher gold and silver prices today will offset potentially higher capex/opex that are inevitable the longer the timeline for an operational mine gets pushed back.

This is all speculation now however, since we need completely updated numbers that will come from the updated RE, and the updated pit & mine plan & everything else in the BFS. Keeping my expectations on the lower side so that I can be happily surprised :)