UCL 0.00% 30.0¢ ucl resources limited

npv calculations for zinc project

  1. 359 Posts.
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    Taken from Q&A section of company website:

    Shareholder Comment: What are the current price assumptions for Zn, Ag, Pb used in NPV calculation?

    How sensitive is the NPV to movements in the zinc price?

    Union Capital Reply: A project NPV of $US 500 million assumes a discount rate of 12%, a zinc price of $US 1100 per tonne, lead at $US 900 per tonne and silver at $US 6.10 per oz.

    The NPV is sensitive to zinc prices. For example

    $US 1200 per tonne: NPV $US 670 million
    $US 1000 per tonne NPV $US 320 million.

    Shareholders should note that the NPV's could be +/- 30%, as the spreadsheet used was developed just before the start of the BFS. The result will obviously become more accurate as a result of the BFS.

    Rob Murdoch

    KZl also starting to look good Zinc.

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