Re: My ROFO proposition
in response to
by
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%)
Message: Re: My ROFO proposition
With the understanding that Sumitomo will pay in total anywhere between 4 to 5 times their share of EBITDA based on the First 5 Full Years, simplified the model even further.
| Options | 1 | 2 | 3 |
| LT copper price (lb) | 3.25 | 3.50 | 3.75 |
| SC EBITDA (100%) First 5 Full Years ($M) Ref. 2021 PEA |
695 | 755 | 815 |
| SC EBITDA (25%) First 5 Full Years ($M) |
174 | 189 | 204 |
| EBITDA multiple used for valuation | 4 | 5 | 6 |
| Equivalent valuation ($M) for a 25% interest in SC @sanction decision |
695 | 944 | 1223 |
| Estimated number of years left before a sanction decision |
2 | 2 | 2 |
| Discount rate per year pre-sanction decision |
12% | 12% | 12% |
| Valuation for 25% of SC (2022 $M US) |
554 | 752 | 975 |
| Payment terms | Shares and/or cash |
| Additional payments to Copper Fox (depending above option chosen) | ||
| Payable annually during the First 5 Full Years of production | ||
| 1 | 2 | 3 |
| 25% of the incremental EBITDA vs. the SC 2021 PEA up to $3.75 US copper |
12.5% of the incremental EBITDA vs. the SC 2021 PEA up to $3.75 US copper |
N/A |
| 12.5% of the incremental EBITDA vs. the SC 2021 PEA above $3.75 US copper |
6.25% of the incremental EBITDA vs. the SC 2021 PEA above $3.75 US copper |
N/A |
+ the milestone payments ($40M CA) per the SCJV agreement
IMO.
MoneyK
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