Re: Dollar down below 88 cents
in response to
by
posted on
Nov 04, 2014 12:16PM
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%)
let's not forget lost value of mineral prices and also how much of our capex is being purchased outside Canada the exchange affects us negatively on those items
I know the price of copper is down and will have a negative effect on the NPV, that's why I said the forex will compensate for that factor to a degree. I do think that there is a general assumption after 2016 supply will be tight for copper and the price will go up. We don't really know what that will do to the value of the dollar but if our economy is supported by the price of oil, it doesn't look good.
I took the figure of $75 million per point of Forex right off the September presentation. It says that a drop of a penny will increase the NPV for $75 million and I assume that takes into account things like $US dollar purchases outside Canada. It's a bottom-line value, isn't it?