Hi Naaman"DFS in 2006 was better - NPV $88mil and IRR of 111%....

Hi Naaman

"DFS in 2006 was better - NPV $88mil and IRR of 111%. What happened?"

Good question.

I am still figuring out why the NPV & IRR are so much different to the 2006. My guess is that the NPV & IRR must have been calculated differently since all other parameters (recovery/ore reserves/throughput of ore etc etc has actually increased favourably).

Could it be the increased CAPEX & slight increase in Operating Cost?

The figures might not be directly comparable IMO.

2006 DFS suggested: A$117M before tax & BEFORE CAPEX

2012 DFS suggested: A$62 Million before tax & "AFTER CAPEX"

Reference - " Before tax surplus cash of A$62million after recovering the original investment/CAPEX."

Although the CAPEX (Capital cost) has increased, the profit over the 4 years is not off by much. Molyhil is still VERY profitable with many potential to grow.

$62M/4 years = 62,000,000/800,000,000 = 7.6c (And there's still LOTS of room to grow as only 35% of the resource was used in this DFS & 4 years mine life.

Can someone please try to explain the differences btw the 2006 and 2012 NPV & IRR?

Thanks
Kiddo