Re SPM, read further about the extremely conservative metal price assumptions. Also notice that it does not include 6300 metres of drilling that have already been completed, and that five drills are working on site for the foreseeable future proving up more.
" - The Base Case Net Present Value ("NPV"), after tax, of
US$14.3 million and an Internal Rate of Return ("IRR") is 26.2%
(using US$11.00 per oz. for silver, US$1.25 per lb. for zinc,
US$0.50 for lead, US$2.25 for copper, 10% real discount rate,
$40.30/tonne operating costs (the operating costs include a
contingency factor of 7.5%).
- Current Metal Price NPV, after tax, of US$46.2 million and an IRR
of 60.7% (using a 10% real discount rate and $40.30/tonne operating
costs). Metal prices as of June 5, 2007, are US$13.63 per oz. for
silver, US$1.67 per lb. for zinc, US$1.04 per lb for lead,
US$3.26 per lb for copper."
This is only the start for SPM. By the time production starts next year, those numbers will have improved considerably.
SPM is running a middle course between IPT which doesn't really bother with drilling up reserves but concentrated on production, and companies like MMG which concentrate on proving up resources and reserves. |
