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

Figure 1.3 illustrates that the Project NPV (at 8% discount) is most sensitive to
exchange rate, and in decreasing order, nickel price, operating cost and capital cost.
Figure 1.3 Pre-tax 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 1.14 shows the corresponding sensitivity parameters and the resulting IRRs.
Table 1.14 Sensitivity Parameters and IRRs (%)
Parameter
Foreign
Exchange
Nickel
Price
Operating
Costs
Capital
Costs
-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 1.4 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. 1-15 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada