Feasibility Study and Technical Report - Pretivm

Figure 22.4Pre-tax Payback Period Sensitivity Analysis4.03.53.0Payback, years2.52.01.51.00.50.0-30% -20% -10% 0% 10% 20% 30%% Change from base caseGold Price Silver Price Exchange Rate Capital Costs Operating Costs22.6 TAXESPretivm commissioned Sadhra & Chow LLP in Vancouver, BC to prepare a tax model forthe post-tax economic evaluation of the Project with the inclusion of applicable incomeand mining taxes.Based on the long-term metal prices used for this study, the total estimated taxespayable on Brucejack profits are $1,778 million over the 22-year mine life. Thecomponents of the various taxes that will be payable are shown in Table 22.4.Table 22.4Components of the Various TaxesTax ComponentLOM Amount($ million)Corporate Tax (Federal) 671.910Corporate Tax (Provincial) 457.244Provincial Resource Tax 649.124Total Taxes 1,778.278The following general tax regime was recognized as applicable at the time of reportwriting.Pretium Resources Inc. 22-7 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC