OK, so a very basic NPV using the following parameters;
- No production year 1 - 500ktpa production year 2 - 1.25mtpa production year 3 - 2mtpa production year 4 onwards - mine life 23 years - IO sale price $90p/t - OPEX $41p/t - Total CAPEX $231m - Discount rate @ 12.5%
pre-tax project NPV = $450m
Obviously the above doesn't allow for a probable 10% Government stake or taxation. Still, it's a very encouraging figure, considering the end goal is really 5mtpa+.
What the above shows is that the project is very robust even at a maximum production of 2mtpa, although it would the stellar at 5mtpa.
If you thought an average price of $100p/t may be more likely due to the premium nature of the product, the NPV jumps to about $570m.
EQX Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
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