The following pretty much sums it up. PVG has an outstanding project.
1.12 ECONOMIC ANALYSIS
Tetra Tech prepared an economic evaluation of the Project based on a pretax financial model. For the 22-year LOM and 18.99 Mt of mine plan tonnage, the following pre-tax financial parameters were calculated
42.9% internal rate of return (IRR
2.1-year payback on the US$663.5 million initial capital • US$2,687 million net present value (NPV) at 5% discount rate.
A post tax economic evaluation of the Project was prepared with the inclusion of applicable taxes
The following post-tax financial parameters were calculated
35.7% IRR
2.2-year payback on the US$663.5 million initial capital • US $1,763 million NPV at 5% discount rate. The base case metal prices used for this study are as follows: • gold – US$1,350/oz • silver – US$20.00/oz • exchange rate – 1.00:1.00 (US$:Cdn$).