Figure 1 - Base-Case Project Cash Flow Before Tax and Debt Leverage

Year Net Cash Flow From Operations Total Capital Cost Pre-Tax Earnings (Equity Investment)
(Current C$000)
2012 -5,115 -2,609
2013 -10,435 -5,429
2014 -14,883 -7,919
2015 -97,525 -50,400
2016 65,424 -27,277 28,204
2017 89,306 -11,041 68,322
2018 91,092 -11,262 69,888
2019 76,143 -83,280 -18,088
2020 26,749 -202,111 -122,224
2021 49,754 -71,706 -47,680
2022 65,583 -26,721 13,133
2023 66,894 -15,231 25,934
2024 68,232 -27,800 14,703
2025 69,597 -15,847 28,021
2026 70,989 -28,923 26,279
2027 72,409 -16,487 40,135
2028 73,857 -30,092 27,979
2029 75,334 -17,153 42,395
2030 72,645 -31,308 25,551
2031 74,098 -14,568 59,530
2032 64,520 -14,859 49,660
2033 58,290 58,290
– Nil

Figure 2 - Average Effective Tax Rates for Projects With 15% and 30% Pre-Tax IRR (7.5% Discount Rate)

Jurisdiction 15% IRR 30% IRR
Nevada 15.1 18.2
Alaska 19.5 24.1
Manitoba 19.6 24.7
New Brunswick 19.7 24.8
Ontario 20.5 23.3
British Columbia 21.2 26.2
Northwest Territories 21.5 26.4
Nunavut 21.9 26.8
Chile 22.8 20.9
Quebec 24.7 30.1
Newfoundland and Labrador 25.7 28.8
Yukon 27.9 30.0
Mexico 32.1 31.4
Mongolia 43.2 29.2
Republic of South Africa 44.4 34.3
Tanzania 46.4 36.0
Peru 60.9 44.9
South Australia 65.7 45.9
Indonesia 74.0 46.5
West Australia 79.8 52.5

Figure 3 - Average Effective Tax Rates Across a Range of Profitability

Jurisdiction IRR (Pre-Tax), Percent
5 10 15 20 25 30
Canada 20.6 20.5 22.5 24.1 25.6 26.8
United States and Chile 22.8 18.5 19.2 20.2 20.7 21.1
Other foreign jurisdictions 137.8 74.5 55.8 47.3 42.8 40.1