Re: M&A activity in the sector

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%)

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MoneyK

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Re: M&A activity in the sector

posted on Nov 25, 2019 01:35PM

In order to compare two projects, I look at the capex+sustaining required, future cash flow and when the cash flow will come in.

The last portion (when the cash flow will come in) is why they are currently optimizing the numbers. Getting more money in the first 5-7 years will increase significantly the NPV as you don't loose (8%) every year.

My guess is that the Schaft creek project will have a 20-25% (pre-tax) IRR. 80%+ will only happen for Teck once they use all their internal leverage.

I don't see anyone paying an outrageous premium for the other zones, as they will probably not be mined in the next decades. However, we still need to get fair value for what will happen in the next 21 years.

I still believe that something around 800M will be the price tag for Schaft Creek only.