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

The following financial results were established for the Project:
• 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.
• Gross metal revenue was determined from recovered metal grades and
metal prices. Base case metal prices are listed in Table 1.12.
• Net smelter return (NSR) revenue was determined by applying a 25% cost
factor against gross metal revenue to account for smelting, refining,
transportation and marketing costs. The LOM net NSR revenue was
determined to be US$24.9 billion. The smelting recoveries were 90.00%
nickel, 98.00% copper, 96.00% platinum, 96.00% palladium, 96.00% gold
and 90.00% cobalt.
• Pre-tax cash flow or earnings before interest, tax, depreciation and
amortization (EBITDA), determined as net revenue less operating, capital
and closure costs, was determined to be US$10.8 billion.
Metal production from the Project is presented in Table 1.11 and base case metal
prices are shown in Table 1.12.
Table 1.11 Metal Production from the Wellgreen Project
Item Unit Value
Total Material to Mill t 405,331,683
Average Annual Material to Mill t 10,954,900
Mine Life
NSR
years 37
Average LOM NSR*
Average Grade
US$/t milled 61.51
Nickel % 0.32
Copper % 0.26
Cobalt % 0.02
Gold g/t 0.177
Platinum g/t 0.411
Palladium
Total Production
g/t 0.347
Nickel lb 1,959,299,445
Copper lb 2,057,705,063
Cobalt lb 133,775,733
Gold oz 1,355,782
Platinum oz 2,463,685
Palladium oz 3,299,404
table continues…
Prophecy Platinum Corp. 1-13 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada