Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10035-200-46 - Rev. 0
22-8
Table 22.9 - Sensitivity Analysis
Condition
Impact on
NPV @ 10%
Discount
NPV @ 10%
Discount
(Millions)
20% decrease in price
72% decrease
$117
20% increase in price
72% increase
$735
20% decrease in operating cost
38% increase
$264
20% increase in operating cost
38% decrease
$587
20% decrease in capital cost
13% increase
$483
20% increase in capital cost
14% decrease
$368
100% decrease in operating Power cost
2% increase
$437
100% increase in operating Power cost
3% decrease
$415
20% decrease in Acids and Reagents cost
19% increase
$505
20% increase in Acids and Reagents cost
19% decrease
$347
20% decrease in labor costs
1% increase
$429
20% increase in labor costs
1% decrease
$423
20% decrease in price, 20% increase in
operating cost, capital cost, acids and
reagents, labor costs and 100% increase in
operating power costs
108% decrease
($
34
)
20% increase in price, 20% decrease in
operating cost, capital cost, acids and
reagents, labor costs and 100% decrease in
operating power costs
107% increase
$883
(Roche, 2014)
22.4 Taxes
The model includes the following taxes on the project:
1. Property used for industrial purposes – 11.5% of asset book value and assumed
76 mil rate
2. All other property, real and personal – 9.0% of estimated value
3. Wyoming state severance – 2.0% of calculated state taxable revenue (see
below)
4. Crook County Ad Valorem – 6.15% of calculated state taxable revenue (see
below)
5. Federal - 35% regular/20% alternative minimum tax with mineral depletion
