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

22.4 M ETAL P RICE S CENARIOS
The LOM average metal prices for three cases, +20%, base, and -20%, were
identified with their corresponding NPVs at a discount rate of 8%. The results are
shown in Table 22.6.
Table 22.6 Pre-tax NPV by Metal Price Scenario
Case
Ni
(US$/lb)
Cu
(US$/lb)
LOM Average Metal Prices
Co
(US$/lb)
Au
(US$/oz)
Pt
(US$/oz)
Pd
(US$/oz)
NPV
(US$ million)
@ 8%
Base +20% 11.38 4.27 19.48 1,653.44 1,905.56 697.54 3,525
Base +10% 10.43 3.92 17.85 1,515.66 1,746.77 639.41 2,962
Base 9.48 3.56 16.23 1,377.87 1,587.97 581.28 2,396
Base -10% 8.53 3.20 14.61 1,240.08 1,429.17 523.15 1,831
Base -20% 7.58 2.85 12.98 1,102.30 1,270.38 465.02 1,268
The financial model was run at the LME spot metal prices, effective date of July 6,
2012 and the resulting NPV was US$1,783 million and the IRR was 26%.
22.5 S ENSITIVITY A NALYSIS
NPV and IRR sensitivity analyses were carried out on the following parameters:
• exchange rate
• nickel price
• operating cost
• capital cost.
The analyses are presented graphically as financial outcomes in terms of the pre-tax
NPV and IRR.
Table 22.7 shows the corresponding sensitivity parameters and the resulting NPVs.
Prophecy Platinum Corp. 22-7 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada