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i mainly want to know hihglet ones e the following Financial Technical Modelling (FTM) questions: . A multi-mineral ore body consists of 2.0 million tonnes
i mainly want to know hihglet ones
e the following Financial Technical Modelling (FTM) questions: . A multi-mineral ore body consists of 2.0 million tonnes of ore at 3.20% Cu and 2.83g/t Au. Long-term plans indicate the exploitation of the deposit through an underground operation, where the ore body will be mined over 5 years (Year 1 to 5 ). Assume: - Gold price with forward sale =55% of gold production will be sold forward at a price of A\$48.50 per gram in Year 1 , with a 2% per year escalation thereafter. - Gold price with spot sale =45% of gold will be sold at spot prices, averaging at A $40 per gram. - Copper price: The company is hedging Cu price at US\$2.30 per lb. during the period of the productive life. Also, for avoiding uncertainty, the company has also hedged the exchange rate at A$1=US$0.75 for the life of operation. - Metallurgical recoveries =87%Cu and 75%Au. - Concentrate grade =32.5%Cu. - The company sells copper concentrate (which also contains Au) at smelter deductions of 50% of the value from concentrate sales. If 1 tonne =2204.62lb., determine the Net Smelter Return (NSR) and revenue in Year 1. Insert appropriate values in the Value column shown in Table 5.1 on Page 8. Show your calculations where appropriate. Assume that Table 5.1 relates to Year 1 consisting of 400,000t of ore productionStep by Step Solution
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