Ann: Anglo American Agreement, page-47

I went back to the 2013 PFS for Buena Vista and Nevada Iron's October 2013 estimate of the free cash flow generated by Buena Vista was US$565 million, with an NPV at a discount rate of 7.5% of then US$236 million. This is for a 67.5% concentrate.

http://www.nv-iron.com/projects/buena-vista/ni-43101-technical-report

The economic assessment assumed a 67.5% concentrate price of US$104.29/DMT FOB West Sacramento.

Cost breakdown for the 67.5% concentrate is as per below:

Mining - $17.20

Processing - $17.55

General and administration - $2.19

Offsite freight to port and loading -$26.81

Total FOB - $63.75

The 62% DSO product shouldn't require the processing, so FOB cost will be around $43 in 2013 dollars. 8 years on, costs would have gone up. Assuming 4% escalation per annum in these costs, the 2021 cost would be around $63 for the 62% DSO product and $87 for the 68% concentrate product.

I might have a crack at running the NPV numbers that Rodney worked on with the revised costs.

Hopefully prices stay low on Monday, so that I can top up further.