Copper Fox Metals Inc.

Welcome To the Copper Fox Metals Inc. HUB On AGORACOM Copper Fox Metals is a Canadian-based resource company focused on developing the world-class Schaft Creek Project in northwestern British Columbia.

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Re: CANADIAN DOLLAR Good for Copper?

almost 11 years ago

in response to unearththis's message

A cheaper Canadian dollar is a good thing for CUU and Schaft Creek's NPV, which is denominated in Canadian dollars. Metals are priced in US dollars and so will concentrate shipments. CUU will get more Canadian dollars in exchange for the same shipment when the USD exchange is stronger.

The project's Economic Sensitivity showed that the Cdn/US exchange rate was the most influencing price factor on NPV. See Figure 22.2 in the Feasibility Study (Page 524). The FS was done at $0.97, and we are now at $0.94. This minor change alone added about $300 million to NPV8. If some predictions of $0.85 come true, that would add a billion dollars, changing NPV8 from $513 Million to about $1.5 Billion.

Keep in mind that as dramatic as this exchange rate improvement is on NPV dollars, it would be more dramatic on an NPV that wasn't so handicapped to begin with, and even more so on an unhandicapped NPV5.

JMHO