The editable mine models (NOT the no-formulas versions) contain a Discounted Cash Flow sheet that calculates net cash flows after capital expenditures, working capital and tax paid for each year modelled. A supplementary column calculates a sustainable net cash flow figure for the life of the mine, based on current reserves and operating rates. The sheet then calculates Net Present Values for each year modelled for a range of discount rates from 10 to 15 percent. These NPVs include an NPV estimate for all years outside the forecast horizon for the life of the mine. The DCF sheet includes a routine for paying back working capital released at mine closure and an estimate for mine closure and rehabilitation. The tax calculation is based on current tax and tax depreciation rates for the country of the mine's domicile, a tax depreciation schedule and prior tax losses. The calculated net cash flows are therefore of the form: operating cash flow less capex, mine development and exploration less working capital less tax paid. No financing costs are included because the discount rates to estimate NPV are typical weighted average costs of capital used in the industry. Many of the elements in this sheet are editable by the user. Capital expenditures can be changed, as can the number of days for receivables and payables (we use 60 and 30 respectively as defaults) and of course the discount rates used to estimate NPV. See the DCF sheet for Grasberg (Note - only years 1999-2005 are shown for clarity). Subscribers may download the free sample editable model for Grasberg here

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