A little jet lagged so hard to sleep...played with the NPV numbers a little.
Using data from PEA we get the following:
| Technical Parameters |
|
| Average Grade |
3.14% |
| Cutoff Grade |
0.60% |
| Reserve Level at Cutoff |
45,200,000 |
| Contained Value |
1,418,000 |
| Stripping Ratio |
1.82 |
| Ore Production Rate (t/d) |
3,600 |
| Mill Recovery |
75% |
| Operating days/year |
355 |
| Mine Life (years) |
20 |
| |
|
| Financial Parameters |
|
| Current Graphite Price ($/t) |
7,500
|
| Mine Operating Cost+G&A+Selling ($/t) |
16 |
| Mill Operating Cost ($/t) |
10 |
| Total Operating Cost ($/t) |
26 |
| Mine Capital Cost |
150,000,000 |
| Mill Capital Cost |
180,000,000 |
| Total Capital Cost |
330,000,000 |
| Working Capital |
50,000,000 |
| Real Risk-adjusted Discount Rate (%) |
8% |
Which gives us an NPV of 600K USD and IRR was 25%. That is with revenues starting in 2020.
Using 7000 ore production rate, 85% recovery gives us 66k t/y production and $9000 per ton revenue, NPV jumps to $2.9B USD. As anyone can see, every variable is a multiplier and has a drastic effect on NPV.
IRR was 51%.
I have set up the matrix to have every ton produced costs $2,067 which is above PEA#s which again was conservative IMO.
If anyone wants the spreadsheet to play around themselves, PM me.
G.
