Possible BFS scenario, page-109

Midnight - you have done a good job with gross profit - although it seems that your assumption about the price of Co at start up in 2020-21 may be well off the mark (with Wood McKenzie forecasting $33,000/tonne for Co by then).

But gross profit is NOT bottom line or net profit.

You have only taken into consideration mining cash costs (C1 costs in the Woods McKenzie schema or adjusted operating costs in the World Gold Council schema).

If you want to determine 'profit', you also need to include C2 and C3 costs (or AISC and AIC, if using the WGC model).

There's no way I am going to attempt to identify the C2 and C3 costs as I don't have the time and don't have access to accurate info. However, in total, C1, C2 and C3 costs will be 2-3 times as much as C1 on its own.

Factor that into your model and something closer to consensus forecasts for the price of Co and Ni after 2020, and you will be closer to the mark.

See the following for a discussion of the cost concepts discussed above:

https://www.srk.com/sites/default/f...st_inputs_in_a_mining_valuation-PDAC_2017.pdf