I feel like the JORC table could use some work, to better understand the sensitivities analysis.
The above JORC table shows 0.3g/t from Korbel, then 0.3g/t even after adding RPM North (the Total row)...
So I've recalculated it myself, with more decimal places on the g/t, and using the SS cut-offs.
The mid-section of the above screenshot is most relevant. It uses the cut-off for Korbel as used in the SS, you'll note that adding RPM increases the grade from 0.4g/t to 0.49g/t. A 22% rise.
According to the SS sensitivities analysis, a 10% rise in grade adds $225m to NPV.
Well, this is 22%, not 10%. Worth $495m extra instead?
That's probably exaggerating a bit, since it's not Korbel's grade rising by 22%. So mixing-in RPM feed could boost the grade by 22% (if spread over 15 years), but would probably incur higher transport/infrastructure costs. So the sensitivities analysis would not apply 1:1.
Alternatively, they may front-load RPM feed to get more cashflow up front. Eg. mix-in RPM's resource over the first 7 years (instead of the full 15) and add 45% to the grade instead of 22%. Interesting. That could make it even more sensitive, by avoiding the higher discount rate of later years.
That assumes 1.5Moz from RPM North. Could grow too?
Caveat: resources ain't reserves.
(20min delay)