I used QB2's reserve case to compare with our reserve case (slide 27) - Apples to Apples.

https://www.teck.com/media/QB2-Partnership-and-Sanctioning-Conference-Call.pdf

Once SC is in production, the inferred would get mined and be reflected in the incremental EBITDA generated, triggering a higher payment to Copper Fox for options 1 & 2.

My objective was to come up with a comparaison based on EBITDA (First Full 5 Years) as this information is available and more precise.  Since the First Full 5 years EBITDA ratio (e.g. $1200M vs $695M) vs. LOM EBITDA ratio (e.g. $900M vs $515M) are similar between SC & QB2 the end result should be close whatever method is used.

When valuating based on EBITDA, I feel that the mine life/reserves are less relevant, conditional that both mines have enough potential to last 2-3 decades.  After that period, it's so far in the future that the present value of those assumptions is negligeable.

IMO.

MoneyK