NPV is Deceiving Perhaps

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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%)

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Accountant007

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NPV is Deceiving Perhaps

posted on Dec 28, 2012 05:48PM

So we have two bottles of Amarone (1997 excellent Italien wine). One bottle is half full and one is full..identical glass bottles, same spout! Turn both bottles upside down. If the one-half bottle empties in 20 years it is worth $500 million. The full bottle will empty out 1/2 in 20 years..that makes sense since the spout openings are the same. Because of mathemetics, both bottles are worth the same, since it seems that anything coming out after 20 years is worth nothing (due to the present value of money theory).

Now that is the BFS model as outlined by CUU. So the bashers win 100 cudo points. The question is : can another spout in the full bottle be opened/created so we can get that full bottle out in 20 years? Can we upgrade the wine? Or if you are a wine collector, you may want wine for not only your lifetime but for your grandchildren. Teck has to decide now if it wants to pay the price now for an eternal supply of wine.....

or perhaps we have to turn 10 bottles (one-half full) all at once? i.e. create more capacity!!