I am also re-visiting the PFS NPVUnder the presented scenario...

I am also re-visiting the PFS NPV

Under the presented scenario NPV8% for Costa Fuego is $1.2bn with 19% IRR

I don't however look at this as being the final position
1. With La Verde and other optimisation/exploration targets this project will hit the target of 150,000 CU TPA per annum over 30 year mine life.
2. The underground capex will be moved out and I assume year 10
3. Copper and Gold prices will not go down to PFS assumptions. Copper will be moving to $5/lb while Gold prices will remain well over $3,000/oz and possibly significantly higher
4. a JV with the likes of a Hudbay (or similar scale) will de-risk and discount factor can be reduced from 8% to 6-7%

There may well be inflation on both capex cost and opex, but under this type of scenario we are talking about NPV $2.5-$3 billion and IRR over 25%


Then there is Huasco which i see a reality.This type of joint infrastructure sharing is essential for the mining plans in the area. With a startegic water company and the nature of the asset, water infrastructure discount factor 5-6% would be realistic. The NPV would be driven much much higher