whoops - i didnt realise cobalt was so expensive... its actually...

whoops - i didnt realise cobalt was so expensive... its actually $25/lb
25*2206 = $55,000
for some bizarre reason i have used $10,000/t??? my mistake...
despite this - it doesnt exactly do much to make the picture much more appealing.
i have changed it from $10,000 to $40,000 now.

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Ore treated ('000s t) 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Grade (NICKEL) 1.32% 1.23% 1.09% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03% 1.03%
STANDARD GRADE 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Concentrate recovery 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91% 91%
Metal ('000s t) 48.048 44.772 39.676 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492 37.492
Price US$tonne 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000 18000
Grade (COBALT) 0.13% 0.11% 0.08% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07% 0.07%
STANDARD GRADE 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Concentrate recovery 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87%
Metal ('000s t) 4.50 3.81 2.77 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42 2.42
Price US$tonne 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000 40000

Inflation 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Exchange Rate $A/$US 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9
Smelter charge US$/T N/A
($ million unless otherwise shown)
Metal Price A$/t 0 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000
Metal Revenue 960.96 895.44 793.52 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84 749.84
Metal Price A$/t 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444 44444.44444
Metal Revenue 199.9111111 169.1555556 123.0222222 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444 107.6444444

Less TCIRC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Sales Revenue 1160.871111 1064.595556 916.5422222 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444 857.4844444
Admin 1.160871111 1.064595556 0.916542222 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444 0.857484444
Net Revenue 1159.71024 1063.53096 915.62568 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696 856.62696
Less
Operating cost/t 480.48 447.72 396.76 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92 374.92

EBITDA 679.23024 615.81096 518.86568 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696 481.70696
Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
CAPITAL EXPENDITURE 1444.444444 26 26 19.5 19.5 13 13 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5
Debt Repayment 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5 32.5
Debt Outstanding 650 617.5 585 552.5 520 487.5 455 422.5 390 357.5 325 292.5 260 227.5 195 162.5 130 97.5 65 32.5 0
Interest Cost 61.75 58.5 55.25 52 48.75 45.5 42.25 39 35.75 32.5 29.25 26 22.75 19.5 16.25 13 9.75 6.5 3.25 0
EBTDA 617.48024 557.31096 463.61568 429.70696 432.95696 436.20696 439.45696 442.70696 445.95696 449.20696 452.45696 455.70696 458.95696 462.20696 465.45696 468.70696 471.95696 475.20696 478.45696 481.70696
Taxation Depreciation 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65 65
Depreciation carried fwd 1300 1235 1170 1105 1040 975 910 845 780 715 650 585 520 455 390 325 260 195 130 65 0
Exploration carried 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Pre-tax income (EBT) 552.48024 492.31096 398.61568 364.70696 367.95696 371.20696 374.45696 377.70696 380.95696 384.20696 387.45696 390.70696 393.95696 397.20696 400.45696 403.70696 406.95696 410.20696 413.45696 416.70696
Tax @ 30% 165.744072 147.693288 119.584704 109.412088 110.387088 111.362088 112.337088 113.312088 114.287088 115.262088 116.237088 117.212088 118.187088 119.162088 120.137088 121.112088 122.087088 123.062088 124.037088 125.012088
Project Profit 386.736168 344.617672 279.030976 255.294872 257.569872 259.844872 262.119872 264.394872 266.669872 268.944872 271.219872 273.494872 275.769872 278.044872 280.319872 282.594872 284.869872 287.144872 289.419872 291.694872
Cashflow project -1444.444444 425.736168 383.617672 324.530976 300.794872 309.569872 311.844872 320.619872 322.894872 325.169872 327.444872 329.719872 331.994872 334.269872 336.544872 338.819872 341.094872 343.369872 345.644872 347.919872 350.194872
THE BOTTOM LINE
NPV @ 5% $2,644.10 NPV/SHARE FD 0.850878418
NPV @ 10% $1,325.13 NPV/SHARE FD 0.426428588
NPV @ 15% $615.63 NPV/SHARE FD 0.198110653
NPV @ 20% $205.77 NPV/SHARE FD 0.066215635
CAPEX 1300
Debt 0.5 650
Equity 0.5 650
Mine Life 20
Interest rate on debt 10.00%
Assumed raising S.P 0.4
Depreciation p.a 65
Dilution 1625
# of current shares 1200