NPV Aravalli, page-3

I guess we are all a bit shy. I can perhaps share some guesstimates For inputs to calculate NPV. I don't have any experience in calculating NPV though.

For starters cash will flow over a 50 year time frame since MLs will now be provided for 50 yrs and then auctioned on expiry as per the minjng ordinance.

We are looking at an in ground value of minimum $10 billion to a maximum $100 billion (very loosely based on sinsedar khurd 100 million tonnes at I think 8% lead zinc which based on my amateur interpretation is approx 20% of IRL lease area and since lead zinc mineralisation is continuous aravalli should be a monster). So, if we have 500 million tonnes at 6% lead + zinc and recovery of 85% lead zinc at $2200 gives $56 billion then half in costs gives say $28 to $30 billion net

(I'm guessing all in costs at 50% of in ground value. I have no basis for this. Could be higher/lower.)

IRL won't own 100% of Aravalli if there is a solid investor at project level, so maybe 80% held by IRL.

I think IRL has previously used an internal rate of return if 19%. Not sure if this is too low?

Tweak these figures as you see fit then we can plug into NPV calculator.

We could get NPV based on the range from lower estimate in ground value to higher in ground value.

But I think NPV will only be worth the paper it's written on once a bankable feasibility study is provided and the mining lease granted.
Should be a billion dollar to multi billion value here once it's all said and done.

However, we are 12 months off getting the ML.

Any news in funding agreements will add certainty.


Happy for you guys to change input values and disagree on anything and everything above.