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I'm wondering how their NPV calculations came to be?The target...

  1. 145 Posts.
    I'm wondering how their NPV calculations came to be?

    The target is 720kt ore per year. Recovery 91% and grade 13.2%. That makes 86t of contained zinc. Concentrate is 53.8% zinc so that makes 161kt concentrate produced each year.

    Cash cost per tonne of concentrate is supposedly 558. I don't know what the tax rate is but playing around on a spreadsheet with 35% tax the only way I can get an NPV with capex of 136 and 10% discount rate is with about 1100t zinc in concentrate. That number is 1500 less than the zinc price they supposedly use and you can't attribute that to smelting costs.
    Anyone have any thoughts on this?
 
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