340
Figure 5 and 6 are the HoV model result for the project. These graphs plot the NPV (relative value, or NPV Index value) vs. production rate and cut-off grade for the various options.
In this case (20 m sub-level, CRF backfill, extract all profitable stope, $1200/ounce au price,
single cut-off for all zones), the optimum cutoff is around 5.0 with a production rate of
0.9Mtpa to get the highest NPV, and the optimum cutoff is around 3.0 with a production
rate of no more than 0.9Mtpa to get the highest FCF. Adjusting any of the inputs could
Figure 5. Hill of value result of NPV.
Figure 6. Hill of value result of FCF.
Disc. Rate ~
Au Price ~
N
p
v
I $250M -$300M
I
I $2QOM -$26()M
N
D$150M -$200M
D
0$100M -$16()M
E
D$6()M -$100M
X
• $OM -$ 50M
1 ($50M)-$0M
1 ($100MH$50M)
1 ($150MH$100M)
D($200MJ1$150M)
1 ($250MH$200M)
Disc. Rat~
Au Price~
1 $800M -$850M
$750M -$800M
1 $100M -$150M
1 $650M -$100M
1 $600M ·$650M
• $55 0M -$600M
$500M -$550M
o $450M -$500M
D $400M -$450M
o $350M -$400M
$300M -$350M
$250M -$300M
1 $200M -$250M
o $150M -$200M
N
p
v
N
D
E
X
I NPV vs COG Prate I
I em."'"'-,. H
COG
IFCF vs COG Pratel
I M ... AI Stopes [.J
~
I ce,.nted Rock ,. [.J
COG