When NPV is charted against phase number, I get negative NPV increments in the last few phases. Why?
This is perfectly normal. The ultimate pit maximizes the undiscounted cash flow, not NPV. The NPV values for phases represent the worst case scenario where the entire phase is mined bench by bench. The optimum NPV is provided by following the extraction sequence. Extracting the pit according to the phases will almost certainly be non-optimal. The most reliable NPV estimates are produced by NPV Scheduler and only these should be used to predict the project s profitability.
Related Questions
- Does each player complete all seven phases in the action sequence before the next player starts his or her turn or do all players complete phase one before going to phase two?
- When NPV is charted against phase number, I get negative NPV increments in the last few phases. Why?
- When will the subsequent phases get underway to expand the terminal after Phase one is completed?
