Something to consider - in terms of risk! Sensitivity Analysis...

Something to consider - in terms of risk!

Sensitivity Analysis Projections included in MYL statements to investors speak of high profitability, and the company estimates capital expenditure of $300 million is needed to launch large scale production at Bawdwin. This shows in relatively low sensitivity to a rise in capital expenditures, compared to operating expenditure. MYL’s own investor return, as represented by Net Present Value, is highly sensitive to price fluctuations: a 50% rise in commodity prices, for example, would yield an NPV (at 8% discount) which was more than twice the NPV of the base scenario, using the company’s target prices. On the bear side, a persistent drop in prices by more than 35% would leave the project unprofitable. MYL’s plans for export seem to be directed towards China, and the sensitivity to price may represent an investment risk in the case of “lock in” to Chinese buyers.

https://openoil.net/wp/wp-content/uploads/2016/12/oo_my_bawdwin_report_200114_0812_jw.pdf