hillside- what is it worth, page-11

So I did a rough calculation.

Involving $550m borrowed at 9% paid back over 8 years. I also assume that the total project cost will be $850m (as per announcement of reduced capex)
Royalty rate at 2% for first 5 & 5 % from then on.

I also allowed for higher cash flows early as per their announcement, but less later on in the project.


NPV at 10%= $365m
NPV at 8%= $510m (8% is the generally accepted discount rate for mining projects with lower risk)


Now when you consider that commodity prices are significantly higher than what the PFS uses, and that the BFS is seeking to improve the cash costs, that NPV could improve by a big margin. (25-50% )


* Note these are my rough calculations and could be very wrong!