By looking at the share price and the volume, I expected there will be something happen in the near future. I truly believe, this share price does give some heat to our management.
At this moment, we can combined it with the excellent comments by Ortega!
As long as the truth reason is profit sharing rather than the environmental concern, there are every reasons to support that Crystallex will mine LC.
Just did a NPV sensitivity for the LC project with the following assumptions:
Gold Price stay flat at 900 per ounce. Production of 252K ounce for the first five years and 233K ounce thereafter until year 65.
Net Profit Margin (Net Income/Revenue) is a variable along with WACC.
Here is the result of the NPV of the project (In Million).
I personally believe that the NPM of 25% - 30% with WACC of 5% - 7% is a valid assumptions.
| |
Net Profit Margin |
| |
25.0% |
| WACC |
|
| 2.0% |
$1,918 |
| 2.5% |
$1,696 |
| 3.0% |
$1,511 |
| 3.5% |
$1,357 |
| 4.0% |
$1,227 |
| 4.5% |
$1,117 |
| 5.0% |
$1,023 |
| 5.5% |
$942 |
| 6.0% |
$872 |
| 6.5% |
$811 |
| 7.0% |
$757 |
| 7.5% |
$710 |
| 8.0% |
$668 |
| 8.5% |
$631 |
| 9.0% |
$597 |
| 9.5% |
$567 |
| 10.0% |
$539 |
| 10.5% |
$515 |
| 11.0% |
$492 |
| 11.5% |
$471 |
| 12.0% |
$452 |
| |
Net Profit Margin |
| |
30.0% |
| WACC |
|
| 2.0% |
$2,301 |
| 2.5% |
$2,035 |
| 3.0% |
$1,813 |
| 3.5% |
$1,628 |
| 4.0% |
$1,473 |
| 4.5% |
$1,341 |
| 5.0% |
$1,228 |
| 5.5% |
$1,130 |
| 6.0% |
$1,046 |
| 6.5% |
$973 |
| 7.0% |
$909 |
| 7.5% |
$852 |
| 8.0% |
$802 |
| 8.5% |
$757 |
| 9.0% |
$716 |
| 9.5% |
$680 |
| 10.0% |
$647 |
| 10.5% |
$617 |
| 11.0% |
$590 |
| 11.5% |
$565 |
| 12.0% |
$542 |
