Option A)Go and put $33 million into a bank @ 7.5 % for 10...

Option A)
Go and put $33 million into a bank @ 7.5 % for 10 years.

Option B)
Go and put $33 million into building Wolfram after 10 years see what you get using a discount rate of 7.5 %

You need to generate cash flows > $ 47 million AFTER tax.
Lets say $10 million for the disposal value of the plant after 10 years using depreication of $1 million annualy on the plant, that's $37 million in cash flow after tax for 10 years to even come par with putting that into the bank. A profit after tax of $3.7 million is required every year.

But why are we even comparing it with putting into the bank? There is no 'risk' at the bank, there is huge risk with this project.


The revenue was grossly over valued in my earlier post.

Output of plant 150K

PRICE
Mo $33.00 pound
WO3 $250.00 MTU

GRADE
Mo % 0.102
WO3% 0.40

RECOVERY 80%

QOL Share 85%

Revenue $17.7 million per year

Opex 150K @ $90.00 per tonne = $13.5 million

EBIT = $4.2 million per year!

Please critique the figures and NOT my spelling!