ZEN stated after-Tax NPV $438M discounted at 10% in the PEA, using variables Capex us$411.65M, Net Cash Flows us$110M, on less than ½ the Resource for an Open-Pit lom for 22 years.
NPV for Dummies (me), countered, using same variables, NPV was actually us$553.4M at 10% (In my calc’s, year 1 mining was discounted as year 1, ie., full value $110M, where ZEN discounts by calendar with year 1 mining as actually year 3 then +22 year minelife.) see table below,
Note 1: Year 1 in 2018 not scheduled for full year mining.
Note 2: In 2018 after Mine Build NPV will be us$553.4M discounted at 10%.
Note 3: In 2018 after Mine Build, no Discount is required, NPV is us$2.0 Billion (Cdn $2.54B), OK too much for some, let’s say even after minebuild there is still risk and use 3.0% for equivalent 10yr Bond Rate, NPV is still us$1.34B (Cdn $1.78B at today’s 78.65 exchange cad/usd)
Cheers, Mark
Date
| Year
| Net Margin
| NPV
| Discounted
|
|
| Cash Flows
| 10%
| Cash Flows
|
|
|
| Open Pit
|
| 2016
| Build
|
| -411,465,000
| 10%
| 2017
| Build
| 0
| -411,465,000
|
| 2018
| 1
| 77,021,420
| -347,810,930
| 63,654,070
| 2019
| 2
| 110,000,000
| -265,166,300
| 82,644,630
| 2020
| 3
| 110,000,000
| -190,034,830
| 75,131,470
| 2021
| 4
| 110,000,000
| -121,733,480
| 68,301,350
| 2022
| 5
| 110,000,000
| -59,641,340
| 62,092,140
| 2023
| 6
| 110,000,000
| -3,193,955
| 56,447,385
| 2024
| 7
| 110,000,000
| 48,121,857
| 51,315,812
| 2025
| 8
| 110,000,000
| 94,772,595
| 46,650,738
| 2026
| 9
| 110,000,000
| 137,182,350
| 42,409,755
| 2027
| 10
| 110,000,000
| 175,736,680
| 38,554,330
| 2028
| 11
| 110,000,000
| 210,786,070
| 35,049,390
| 2030
| 12
| 110,000,000
| 242,649,150
| 31,863,080
| 2031
| 13
| 110,000,000
| 271,615,590
| 28,966,440
| 2032
| 14
| 110,000,000
| 297,948,720
| 26,333,130
| 2033
| 15
| 110,000,000
| 321,887,920
| 23,939,200
| 2034
| 16
| 110,000,000
| 343,650,830
| 21,762,910
| 2035
| 17
| 110,000,000
| 363,435,300
| 19,784,470
| 2036
| 18
| 110,000,000
| 381,421,180
| 17,985,880
| 2037
| 19
| 110,000,000
| 397,771,980
| 16,350,800
| 2038
| 20
| 110,000,000
| 412,636,340
| 14,864,360
| 2039
| 21
| 110,000,000
| 426,149,400
| 13,513,060
| 2040
| 22
| 110,000,000
| 438,434,000
| 12,284,600
| 2041
| to
|
| Underground
|
| 2062
|
|
|
|
| |
