Wellgreen Project Preliminary Economic Assessment ... - OTCIQ.com

The smelting, refining, transportation and marketing costs were estimated to be
US$8,310 million. The LOM NSR revenue was determined to be US$24,930 million or
US$17.21/t mined.
LOM net revenue, determined as NSR revenue less royalties, was US$24,930 million
or US$17.21/t mined.
Unit operating costs for open pit mining, site services, G&A and mineralized material
processing were applied to annual tonnages mined and milled, to determine the
overall mine site operating cost which has been deducted from the net revenue to
derive annual operating margin. The LOM operating cost is US$12,056 million or
US$8.32/t mined.
The LOM operating margin, net revenue less operating costs, was determined to be
US$12,874 million or US$8.89/t mined.
Pre-production capital and sustaining capital were considered in the year spent. The
LOM pre-production capital, including a 25% contingency, consisting of expenditures
for project execution, surface facilities and mine equipment was determined to be
US$863 million or US$0.60/t mined for the 2012 through 2018 period. The LOM
sustaining capital, including a 25% contingency, consisting of expenditures for major
mine equipment, other mine equipment, support mine equipment and a TMF, was
determined to be US$1,122 million or US$0.77/t mined for the period of 2019 through
2054.
The LOM closure cost, including a 25% contingency, was estimated at US$61 million
or US$0.04/t mined and was applied equally in the period 2051 through 2054.
Pre-tax cash flow or EBITDA, determined as net revenue less operating costs,
capital and closure costs was estimated at US$10,828 million. The Project has:
• a pre-tax NPV of US$2.4 billion at a discount rate of 8%
• an IRR of 32%
• a payback period of 4.88 years.
A summary of the Project’s inputs, and estimated costs and financial results are
presented in Table 22.4.
Prophecy Platinum Corp. 22-4 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada