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
