October 2011. Elk Point Basin 2 WPX Milestone Project WPX Manitoba Project.
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Transcript of October 2011. Elk Point Basin 2 WPX Milestone Project WPX Manitoba Project.
October 2011
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Elk Point Basin
WPX Milestone Project
WPX ManitobaProject
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Milestone Saskatchewan
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Milestone Timeline
Present
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Scoping Study Highlights
AMEC’s EPCM experience with five
Potash Corp mines adds credibility to
the CAPEX estimates for this project.
• (NPV10) 5.22 Bn1 CAD: IRR 27.3%*1. CRU Projected prices ($511)
• Production rate of 2.5 Mt per year
• 40 year mine life
• Total CAPEX $2.51 billion CAD
• 8.5% Reduction of production costs due to the high formation temperatures
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PFS Highlights
Target Annual Production rate 2.8 Mt/yr
Life of Mine 40 years
Years of Construction 3
Construction Start-up 2013
Mining Start-up 2016
Years to Full Secondary Production 6
Long Term Potash Price (FOB Gate) $511/ tonne USD
Assumed Exchange Rate US$/CAD$ 1.00
Taxes and Royalties $28.90/ tonne CAD
Sustaining CAPEX Rate % 2.0%
Base Case 100% Equity
OPEX $62.35/ tonne CAD
Initial CAPEX $2.458 Billion CAD
Port CAPEX $300 Million CAD
Total Initial CAPEX $2.758 Billion CAD
NPV (10) $4.14 Billion CAD
IRR 22.7%
Payback Period 5 Years
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Geothermal Gradients
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Annual Earning Comparisons
(Oct 25th 2011, average prices) Milestone Potash Project Gold Copper
Commodity Price $500/t $1,700/tr oz $3.42/lb
Annual Production 2.5 mt/year 0.74 M oz 365 M lbs
Life of Mine 40 years 40 years 40 years
Recovered Grade 30.5% 2.79 g/t 2.02 % Cu
Mining Cost $60/t $204/Oz $0.41/lb
* Gate Price excludes shipping to market ( $360/T KCl f.o.b.Vancouver)