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

Table 22.7 Sensitivity Parameters and NPV at 8% (US$ million)
Parameter
Foreign
Exchange
Nickel
Price
Operating
Cost
Capital
Cost
-20% 3,045 1,820 2,890 2,551
-10% 2,721 2,108 2,643 2,474
Base 2,396 2,396 2,396 2,396
+10% 2,073 2,685 2,150 2,319
+20% 1,748 2,973 1,903 2,242
Figure 22.2 illustrates the Project NPV (at 8% discount) is most sensitive to the
exchange rate, and in decreasing order, nickel price, operating cost and capital cost.
Figure 22.2 NPV at 8% Sensitivity Analysis
NPV US$ x 000,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
-20% -10% Base 10% 20%
FX Ni Price Opex Capex
Table 22.8 shows the corresponding sensitivity parameters and the resulting IRRs.
Table 22.8 Sensitivity Parameters and IRR (%)
Foreign Nickel Operating Capital
Parameter Exchange Price Cost Cost
-20% 43 27 36 37
-10% 37 29 34 34
Base 32 32 32 32
+10% 28 34 29 30
+20% 24 37 27 28
Figure 22.3 illustrates the effect that the sensitivities have on IRR with exchange rate
having the greater effect, and in decreasing order, nickel price, capital cost and
operating cost.
Prophecy Platinum Corp. 22-8 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada