Now may not be the best time to entertain offers, we need better copper prices.
The most significant input which affects project economics are projected future metals prices. The four economic cases using the previously discussed input parameters are set out below:
Summary of Economic Results
ItemUnitBase Case3-Y Avg* CaseSpot Price** CaseReal Options Case
Metal Price
| Copper |
US$/lb |
3.25 |
3.63 |
3.69 |
3.25 |
| Gold |
US$/oz |
1,445.00 |
1,445.00 |
1,736.00 |
1,445.00 |
| Silver |
US$/oz |
27.74 |
27.74 |
32.71 |
27.74 |
| Molybdenum |
US$/lb |
14.64 |
14.64 |
11.34 |
14.64 |
| Exchange Rate |
US:Cdn |
0.97 |
0.99 |
1.02 |
0.97 |
Pre-tax Economic Results
| Operating Cash Flow |
CDN$ M |
10,746 |
12,065 |
12,161 |
11,284 |
| NPV (at 5%) |
CDN$ M |
1,694 |
2,348 |
2,419 |
2,665 |
| NPV (at 8%) |
CDN$ M |
513 |
967 |
1,024 |
1,382 |
| NPV (at 10%) |
CDN$ M |
25 |
388 |
437 |
836 |
| IRR |
% |
10.13 |
11.9 |
12.14 |
15.4 |
| Payback |
Years |
6.48 |
5.81 |
5.7 |
4.9 |
| Cash Cost/lb Cu |
CDN$/lb |
1.15 |
1.19 |
1.12 |
1.15 |
| Total Cost/lb Cu |
CDN$/lb |
2.09 |
2.14 |
2.07 |
2.09 |
| Avg Annual operating Cash Flow*** |
Millions |
371 |
414 |
425 |
640 |
*between October 15, 2009 - 2012; **On October 15, 2012; *** Years 1-5
