Oh I do love this stuff. My comments for you arsenic:
1. So your NPV number of A$0.0.84 was calculated from the NPV of A$207m displayed in the BFS dated 29/6/17
2. My NPV model originally calculated A$207m using exactly the same assumptions as in the BFS
3. In the following table I show the key assumptions in HRR's BFS and the changes I made in my NPV calculation
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
1 |
|
Units |
BFS |
Mine |
LME |
2 |
Zn Price |
US$/lb |
1.01 |
1.40 |
1.41 |
3 |
Cu Price |
US$/lb |
3.00 |
3.00 |
2.94 |
4 |
Pb Price |
US$/lb |
0.91 |
1.10 |
1.09 |
5 |
Au price |
US$/oz |
1200 |
1250 |
1287 |
6 |
AUDUSD |
|
0.710 |
0.7800 |
0.788 |
7 |
Tax Losses used |
A$m |
|
91 |
|
8 |
Discount rate used |
% |
8 |
6 |
|
9 |
Notes: 1. The HRR BFS assumes the metal prices and AUDUSA FX rate are the same for every year 2. The LME metal prices are for 18/8/17 3. The Tax losses are useable revenue tax losses and can fully recovered from HRR operating profits. Refer FY2016 AR
|
|
|
|
|
So I suggest you input my assumptions into your NPV model and see what NPV pops out. It will be the same. As I have stated previously the NPV I have correctly calculated is based upon the original BFS and the new assumptions I have detailed above. These new assumptions are now more realistic based on current metal prices and the AUDUSD FX rate. However if significant changes occur and they appear persistent I shall update my NPV model.
There you have it.