Ann: ARL SMM and MC to form a JV to develop KNP Goongarrie Hub, page-236

Can some brilliant minds explain expected annual profit. PFS says IRR is 23% after tax. Total revenue in line with mineral prices would be 52 bln. In 40 years, that makes 52×0.23/40 - 300 mil net annualy. Why such a low IRR if operating cost assumption is about 5700 USD/ton ? Annual EBITDA will be 800 mil. Half a billion hit after interest, taxes and amortisation is quite a ratchet or no ? Is it because of initial high capex - annual amortisation rate makes high share of EBITDA ? And because of high capital cost ?

Still doesn't make a sense. If total asset values 3.2 bln decline on average annualy to zero by end of mine, it makes annual decline 3.2 bln/40 - 80 mil.

And let's assume capital price would be 4% for 40 years. Principal + interest is ~ 6.5 bln. Yearly average paybacks are 163 mil if interest is considered monthly.

That makes 800-163-80 = 557 mil.

I don't know taxes here but maybe roughly 30% ? That would be 390 mil annualy after taxes.

That's just my dumb calculation and definitely methods are not by accountant standards. So more intelligent guys, can You bring out profit assumtions and why IRR after tax is that low, especially when operating costs are under 6000 USD/ton.