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| | Corporate Profile: Northern Peru Copper Corp
Publisher: Kaiser Research Online
Author: Copyright 2013 John A Kaiser
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Northern Peru Copper Corp (NOC-T)
| Northern Peru Copper, one of four Ross Beatty companies to emerge from the May 2005 split of Lumina Copper into four companies, was delisted on March 28, 2008 following a successful takeover bid by China Minmetals Non-Ferrous Metals Co., Ltd. and Jiangxi Copper Company Ltd. NOC's flagship Galeno Copper-gold-silver-moly porphyry project contained 9.5 billion pounds copper, 3.1 million ounces gold, and 269 million pounds moly, and was valued at $426 million by the takeover bid. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
| Galeno |  | 100% WI | Peru | 6-Prefeasibility |
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| Galeno 43-101 Economic Study (USD except where noted otherwise) |
| PFS | Feb 16, 2007 |
| Samuel Engineering | Galeno |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | OP |
| Cost Currency: | USD |
| Processing Type: | mill |
| Capital Cost: | $976,000,000 |
| Operating Rate: | 90,000 tpd |
| Sustaining Cost: | $258,600,000 |
| Operating Days: | 365 |
| Operating Cost: | $5.40/t |
| Strip Rate: | 0.3 |
| BC Cash Cost per Unit: USD | $0.56/lb Cu |
| Mine Life: | 20 years |
| BC Cash Cost Net By-Products: USD | $0.44/lb Cu |
| LOM Tonnage: | 661,000,000 t |
| BC All-In Cost Net By-Prod: USD | $0.63/lb Cu |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $0.41/lb Cu |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Cu | Au | Ag | Mo |
| Grade: | 0.50% | 0.12 g/t | 2.60 g/t | 0.01% |
| Recovery: | 89.6% | 67.0% | 77.3% | 52.9% |
| Annual Output: | 317,520,000 lb | 82,300 oz | 2,000,000 oz | 2,194,416 lb |
| LOM Output: | 6,493,288,410 lb | 1,679,412 oz | 41,240,104 oz | 43,888,320 lb |
| Base Case Price: | $1.35/lb | $475/oz |
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| Spot Price: | $3.10/lb | $1,315/oz | $16.47/oz | $12.10/lb |
| Base Case NSR: | $13.05/t | $1.19/t | /t | /t |
| Spot NSR: | $29.96/t | $3.29/t | $1.00/t | $0.81/t |
| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: |
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| Discount Rate: | 8% |
| After-Tax NPV: | $560,000,000 |
| Total Base Case NSR USD: | $14.24/t |
| Pre-Tax IRR: |
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| Total Spot NSR USD: | $33.26/t |
| After-Tax IRR: | 18% |
| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $290,354,500 | $8.44 | Pre-Tax Payback: |
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| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $915,150,615 | $27.43 | After-Tax Payback: |
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| Enterprise Value CAD : | $442,563,999 | $13.46/sh | Share Price: | $13.73 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $4,572,490,000 | $2,363,164,260 | $1,259,882,871 | $661,297,308 |
| Base Case Pre-Tax Net NPV/Sh USD: | $139.04 | $71.86 | $38.31 | $20.11 |
| Premium BC PT NPV over EV: | $128.57 | $61.39 | $27.85 | $9.65 |
| Spot Pre-Tax NPV USD: | $17,068,412,300 | $9,778,726,742 | $6,095,556,996 | $4,061,998,167 |
| Spot Pre-Tax Net NPV/Sh: | $519.00 | $297.34 | $185.35 | $123.51 |
| Premium Spot PT NPV over EV USD: | $508.54 | $286.88 | $174.89 | $113.05 |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
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| Galeno 43-101 Economic Study (USD except where noted otherwise) |
| PEA | Jul 10, 2006 |
| Samuel Engineering | Galeno |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | OP |
| Cost Currency: | USD |
| Processing Type: | mill |
| Capital Cost: | $853,000,000 |
| Operating Rate: | 90,000 tpd |
| Sustaining Cost: | $340,400,000 |
| Operating Days: | 360 |
| Operating Cost: | $4.47/t |
| Strip Rate: | 0.1 |
| BC Cash Cost per Unit: USD | $0.48/lb Cu |
| Mine Life: | 21 years |
| BC Cash Cost Net By-Products: USD | $0.30/lb Cu |
| LOM Tonnage: | 671,000,000 t |
| BC All-In Cost Net By-Prod: USD | $0.49/lb Cu |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $0.35/lb Cu |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Cu | Au | Mo |
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| Grade: | 0.49% | 0.12 g/t | 0.01% |
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| Recovery: | 88.0% | 42.0% | 66.0% |
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| Annual Output: | 302,961,435 lb | 38,523 oz | 3,744,572 lb |
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| LOM Output: | 6,362,190,135 lb | 808,985 oz | 78,636,021 lb |
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| Base Case Price: | $1.20/lb | $425/oz | $10.00/lb |
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| Spot Price: | $3.10/lb | $1,315/oz | $12.10/lb |
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| Base Case NSR: | $11.22/t | $0.51/t | $1.16/t |
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| Spot NSR: | $28.99/t | $1.56/t | $1.40/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $547,678,000 |
| Discount Rate: | 8% |
| After-Tax NPV: |
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| Total Base Case NSR USD: | $12.88/t |
| Pre-Tax IRR: | 22% |
| Total Spot NSR USD: | $31.95/t |
| After-Tax IRR: |
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| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $272,543,717 | $7.79 | Pre-Tax Payback: | 3.1 y |
| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $890,321,441 | $26.58 | After-Tax Payback: |
|
| Enterprise Value CAD : | $442,563,999 | $13.46/sh | Share Price: | $13.73 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $4,530,018,057 | $2,317,618,890 | $1,239,960,067 | $665,304,254 |
| Base Case Pre-Tax Net NPV/Sh USD: | $137.75 | $70.47 | $37.70 | $20.23 |
| Premium BC PT NPV over EV: | $127.28 | $60.01 | $27.24 | $9.77 |
| Spot Pre-Tax NPV USD: | $17,503,350,258 | $9,861,068,925 | $6,097,206,133 | $4,056,346,428 |
| Spot Pre-Tax Net NPV/Sh: | $532.23 | $299.85 | $185.40 | $123.34 |
| Premium Spot PT NPV over EV USD: | $521.77 | $289.39 | $174.94 | $112.88 |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
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