Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10035-200-46 - Rev. 0
22-6
Table 22.3 - 20% Rare-Earths Base Price Increase
(Millions) Pre-tax
8%
10%
12%
NPV
$949
$735
$581
Model
$563
$426
$327
Variation
$386
$309
$254
Percent Change
69%
73%
78%
(Roche, 2014)
Table 22.4 - 20% Rare-Earths Base Price Decrease
(Millions) Pre-tax
8%
10%
12%
NPV
$176
$117
$73
Model
$563
$426
$327
Variation
($386)
($309)
($254)
Percent Change
-69%
-73%
-78%
(Roche, 2014)
22.3.3 Discrete Cost Fluctuations for Various Inputs
Costs for the inputs for operations, capital, power or acid/reagents may not fluctuate
in step with the other inputs causing adverse financial results for the project. These
risks are shown in the Table 22.5 thru 22.8.
Table 22.5 - 20% Operating Costs Increase
(Millions) Pre-tax
8%
10%
12%
NPV
$355
$264
$197
Model
$563
$426
$327
Variation
($208)
($161)
($130)
Percent Change
-37%
-38%
-40%
(Roche, 2014)
It should be noted that the described increase in all operating costs of 20 percent
does not push any of the project NPVs below zero.
