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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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Message: NPV / IRR of SC

Hey MoneyK, I have taken your previous guess work on calculating the NPV of SC.  I left the Copper, Gold, Silver, Moly production numbers the as they don't seem to have changed much.   I left the copper price at $3.15, Gold $1,300, Silver $17.50, and Moly $10.00.  Exchange rate is 0.77. Discount rate is 8%.

 This means that years 1-7 gross revenue is $1,650 Million Canadian.  But I used the new production of 8.66/t - so 133,000 tpd X 365 days = 48,545,000 tpy X $8.66 = $420 Million per.  This means a cash flow of $1,232 million C$.

For years 8-21 gross revenue is $1,371 Million Canadian.  Less cost of production $420 million = $950 Million C$. 

I assumed 4 years to build the mine - so the new $2,600 Million Cap Ex is spread over the first 4 years or $650 million a year.  

Using all these assumption I came with a NPV of just under $6 billion and IRR of about 29.5%.  This of course is befor Tax.  

Are my assumptions and the use of the numbers correct or at least in the in the ballpark?

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