Using my BAII Plus Texas Instrument calculator

FIGURES:  $1,200 GOLD – revenue, $18 GOLD – cost (net of copper, silver credits), 5% discount rate

Cashflow out:  -$4,800,000,000

 Cashflow in period:  $630,348,071

Period frequency:  19

Calculate NPV:  $2,811,513,711

Calculate IRR:  11.45%

 

Calculations:  19,300,000 oz of gold X 75% recovery = 14,475,000 oz of gold

75% was used because XRC estimates ~70% gold recovery and I believe copper recovery is in the mid 80%.  I took a ROUGH average of 75% for this calculation. 

14,475,000 oz of gold / 19 years = 761,842 oz of gold per year

761,842 oz of gold X $1,182 ($1,200 - $18 (net of multi metallic credits) = $900,497,244 before tax

$900,497,244 X (1-0.30) = $630,348,071 after tax dollars (net income)

 

FIGURES:  $1,660 GOLD (current price) – revenue, $18 GOLD – cost (net of copper, silver credits), 5% discount rate

Cashflow out:  -$4,800,000,000

 Cashflow in period:  $875,661,316

Period frequency:  19

Calculate NPV:  $5,782,647,966

Calculate IRR:  17.37%

 

Conclusion:  we need better recovery rates & if they could find ways to reduce capital cost, the value of this mine will just skyrocket.