Here’s the split before the SCJV was formed.
For Teck (75%), see below the approximate stream of net cash flows (in millions) based on the 2013 FS.
|
Year -5: -75
|
Year 1: -168.75
|
Year 6: 543.75
|
Year 11: 37.5
|
Year 16: 18.75
|
|
Year -4: -225
|
Year 2: 600
|
Year 7: 468.75
|
Year 12: 150
|
Year 17: 300
|
|
Year -3: -750
|
Year 3: 487.5
|
Year 8: 393.75
|
Year 13: 318.75
|
Year 18: 506.25
|
|
Year -2: -750
|
Year 4: 356.25
|
Year 9: 318.75
|
Year 14: 431.25
|
Year 19: 600
|
|
Year -1: -618.75
|
Year 5: 431.25
|
Year 10: 187.5
|
Year 15: 168.75
|
Year 20: 675
|
|
|
|
|
|
Year 21: 243.75
|
Entering all these values in the calculator should give you a positive NPV (8%) around 390M.
For Schaft Creek (25%), see below the approximate stream of net cash flows (in millions) based on the 2013 FS.
|
Year -5: -25
|
Year 1: -56.25
|
Year 6: 181.25
|
Year 11: 12.5
|
Year 16: 6.25
|
|
Year -4: -75
|
Year 2: 200
|
Year 7: 156.25
|
Year 12: 50
|
Year 17: 100
|
|
Year -3: -250
|
Year 3: 162.5
|
Year 8: 131.25
|
Year 13: 106.25
|
Year 18: 168.75
|
|
Year -2: -250
|
Year 4: 118.75
|
Year 9: 106.25
|
Year 14: 143.75
|
Year 19: 200
|
|
Year -1: -206.25
|
Year 5: 143.75
|
Year 10: 62.5
|
Year 15: 56.25
|
Year 20: 225
|
|
|
|
|
|
Year 21: 81.25
|
Entering all these values in the calculator should give you a positive NPV (8%) around 130M.
Conclusion: By not having to finance 25% of the capex, Copper Fox increased its NPV (8%) from around 130M to 771M when signing the SCJV, an increase of 641M. Teck's portion was therefore reduced proportionally.
Note: This calculation does not include any milestone payments.
IMO.
MoneyK
