Great post Quick,
I believe the numbers would be greatly higher as you did not factor in some important aspects regarding the economics of Schaft Creek.
Once you upgrade the 171 MT of waste rock which is treated as a cost rather generating ore alot changes for the better:
-Cost to produce a pound per Copper is lowered (from $1.15 to "potentially" negative $-.04 (BMO estimate)
-Improved mine life (21 years to 60 years as an example)
-Increase in production rates (130,000 tpd/day to 180,000 tpd/day)
-Strip ratio (from 2:1 to ....)
The overall operating costs are greatly reduced which has a significant effect on the NPV. I would guess the NPV would be greater than 1.8 Billion once the waste is converted successfully at a 8% discount, and over 2.5 Billion at 5% discount. That is only with the waste rock converted.
Also, we know there are more ways to further improve the NPV:
-Currency rate (.94 which adds around $200-300M to NPV currently)
- Higher metal values (Schaft Creek once in production the prices will be doubled (supply and demand fundamentals based off economic data)
Wait, there is more ways to improve the NPV:
-40% of the Paramount zone with high grade mineralization under the Pit Shell is not in the current BFS
-Incorporate the new 2012/13 drill results into a new BFS (increase in metal tonnage= greater economies of scale= greater profits)
So, you can see why I want a new BFS to show everyone the real value of the world-class and unique deposit known as Schaft Creek with a "potential" NPV of over 6 Billion or greater at a 5% discount rate (I use this number because SC will be a mine)! Keep in mind we do not know how big this deposit really is as it has not been defined with mineralization open to depth and in all directions!
