Royalties gets revised feasibility numbers

摘要

The Raglan South project of Canadian Royalties (czz-t, cryaf-o) appears to have better economics than a recent scoping study showed, following a review of the operating costs in the study's financial model. The refining charge for copper in the model was, incorrectly, the same charge used for nickel, US50 cents per 1b. (1,100 US dollars per tonne). When copper refining charges - currently estimated by other sources at US9 cents to 9.5 US dollars per 1b. - were changed to US10 cents per 1b. (220 US dollars per tonne), the project's cash flow improved substantially. The revised discounted cash flow model estimates the project's internal rate of return at 25.4 percent, up from 19.6 percent. Its net present value at a 5 percent discount rate grows to 258 million dollars from 175 million dollars, and the payback period shrinks by about half a year to three and a half years.