Feasibility Study and Technical Report - Pretivm

Table 22.3Summary of Post-tax NPV, IRR, and Payback by Metal PriceEconomic ReturnsUnitBaseCaseLowerPriceSpotPrices *NCF US$ million 3,499 964 3,913NPV at 5.0% Discount Rate US$ million 1,763 384 1,984Project IRR % 35.7 13.7 39.2Payback Years 2.2 4.8 2.0Exchange Rate US$:Cdn$ 1.00 1.00 0.98Gold Price US$/oz 1,350 800 1,416Silver Price US$/oz 20.00 15.00 22.70Note: *Spot prices as at June 6, 201322.2.3 ROYALTIESThere are royalties applicable to the Project. “Royalty” means the amount payable by theOwner, calculated as 1.2% of the at-mine-revenue, with the following exemptions:• gold: the first 503,386 oz produced from the Property• silver: the first 17,907,080 oz produced from the Property.22.3 SMELTER TERMSIn the absence of letters of interest or letters of intent from potential smelter or buyers ofdoré, in-house database numbers were used to benchmark the terms supplied by theowner.Contracts will generally include payment terms as follows:• doré: gold and silver – pay 99.8% of gold and silver content. A refining andtransport charge of $2.00/troy oz will be deducted from the metal price.• concentrate: gold and silver – pay 95% of gold and silver content. A treatment charge is$200.00/dmt of concentrate is applied. A penalty charge of $10 per each0.1% of arsenic is also applied.22.4 MARKETS AND CONTRACTS22.4.1 MARKETSThe Project will produce gold and silver doré and concentrates. Doré will be trucked tothe smelter. Concentrates will be loaded in bags and transported from the mill site to thetransfer station for storage and transfer to flat-deck trucks. The flat-deck trucks willPretium Resources Inc. 22-4 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC