chinese very very keen on sundance!50mtpa!, page-12

nectar38;

NPV calc on 50mtpa; Here just a quick version (not NPV) but close enough to give you an answer you are looking for.

2014;
50mt x 100 @ $21 cost = $3.95b
50mt x 120 @ $21 cost = $4.95b

NPV of that 2014 year ALONE at 10% =
@$100/t = $2.967b
@120/t = $3.719b

Each cash flow (here we use profit (inflow - outflow) is discounted to account for the 10%

Here is a 5 year NPV calculation

First 5 years @ $100/t with 10% discount rate and a $5bil estimate of initial outlay (CAPEX)
$7.375b

Same calculation @ $120/t for 5 years at 10% discount with a CAPEX of $5b =
$10.507b

We'd then include stage 2 CAPEX and future cashflows - Which would only add to the total NPV values...