Re: Base Case PEA can only get better

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Garth

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Re: Base Case PEA can only get better

in response to

Base Case PEA can only get better

Tidal Pool

posted on Jun 01, 2015 10:23PM

Tidal,

Just a comment regarding "so doubling the amount of extracted material increases the NPV by 200%"

NPV calcuations are the present value of discounted future cash flows. The further out the cash flow is, the less its worth in todays money. If they were to double the amount of resource utilized, it would impact the NPV, but anything past 20 years would have a greatly reduced value. The real increase in NPV would be to increase the mine size from 30K to 50K as you'd have a much larger FCF per year, while maintaining roughtly the same mine life.