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Re: suerte88 post# 1367

Thursday, 08/16/2018 12:16:03 AM

Thursday, August 16, 2018 12:16:03 AM

Post# of 3580
Spot does not equal long term price! If copper stays at $2/lbs for even a year the project pipeline would be slaughtered turning the bulletin market of 09-10 to a pale blue dot when the extra supply is needed. A lot of the juniors are using $3-3.25/lbs copper price for lack lustre IRR and majors using $2.5-2.75/lbs.

Excelsiors own calculation is $522m @ 29% using 2.25 for copper price. This is usually much higher than for example copper porphyr projects (the large scale projects) that are using 3-3.25 for PoC. That's not to say that depressed prices won't have an impact, but this will just mean that dividends and buybacks becomes the new norm instead of investing in new supply