Emerging Graphene Technology Company
Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications
Message: NPV matrix
Your Vote:
Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
A little jet lagged so hard to sleep...played with the NPV numbers a little.
Using data from PEA we get the following:
| Technical Parameters | |
| Average Grade | 3.14% |
| Cutoff Grade | 0.60% |
| Reserve Level at Cutoff | 45,200,000 |
| Contained Value | 1,418,000 |
| Stripping Ratio | 1.82 |
| Ore Production Rate (t/d) | 3,600 |
| Mill Recovery | 75% |
| Operating days/year | 355 |
| Mine Life (years) | 20 |
| Financial Parameters | |
| Current Graphite Price ($/t) | 7,500 |
| Mine Operating Cost+G&A+Selling ($/t) | 16 |
| Mill Operating Cost ($/t) | 10 |
| Total Operating Cost ($/t) | 26 |
| Mine Capital Cost | 150,000,000 |
| Mill Capital Cost | 180,000,000 |
| Total Capital Cost | 330,000,000 |
| Working Capital | 50,000,000 |
| Real Risk-adjusted Discount Rate (%) | 8% |
Which gives us an NPV of 600K USD and IRR was 25%. That is with revenues starting in 2020.
Using 7000 ore production rate, 85% recovery gives us 66k t/y production and $9000 per ton revenue, NPV jumps to $2.9B USD. As anyone can see, every variable is a multiplier and has a drastic effect on NPV.
IRR was 51%.
I have set up the matrix to have every ton produced costs $2,067 which is above PEA#s which again was conservative IMO.
If anyone wants the spreadsheet to play around themselves, PM me.
G.
6 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply