General Chat, page-7919

SS2 stated 0.9 years payback.

Maybe RPM alone would be marginally quicker.



I'm no sure about CAPEX for RPM only - what is shared necessary infrastructure, and what is Korbel specific.


Year 1 is meant to have low AISC, so high margin, meaning quick payback. North Uphill's recent drilling may help to keep the AISC down for a couple of additional years in the early years. Same with the pit slope changes (allowing to reach deeper ore at North etc, with low stripping).



I'm not too optimistic about a 1/3 CAPEX cost for RPM, but payback should still be quick on a larger CAPEX investment.


Cash Flow Profile shows very high profit and production in year 1 from RPM, then more moderate after that. Any boosts from North Uphill / Pit slopes can help this chart significantly - adding more cashflow to years 2-5.



So about your question of CAPEX - the chart shows high investment, then high payback in year 1. How much of that CAPEX is necessary for RPM? I'd guess 70-90%. If it was 1/3, then it would be a no brainer to go RPM alone and get the huge year 1 cashflow with low CAPEX.

But I think most of the CAPEX is necessary for RPM anyway. So the true profit comes from:
1. Quick CAPEX payback from RPM North.
2. Gradual profit from elsewhere in RPM and Korbel (freely utilizing paid off infrastructure).
3. Significant profit upside from any additions (low cost to exploit, with paid off infrastructure) - Train/Trumpet/Shoeshine/Muddy Creek/RPM connections, or North Uphill and pit slopes.