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Detailed NPV Calculation (Australia): APPENDIX 3

(all figures S$ millions unless otherwise stated)

Operational risk and industrial action @ AAMANGO Copper Australia Limited's Operations

NPV of constructing and operating from a new mine
shaft

YEAR 1 YEARS 2 - 10 YEAR 10 NPV
(March 2018 to February
(End Feb 2018) end 2027 (9 years)) (End Feb 2027)

Pre-tax cash flows -135 30.43 -5
Post tax adjustment
factor (1-t) 1 69% 1
Post tax cash flows -135 21.00 -5
AMANGO's WACC is: 7%
(See Appendix 5.4) 0.935 6.09 0.508
-126.23 127.87 -2.54 -1

The following alternative answer, which excludes the cost of closing of the dangerous shaft, would be even more acceptable as the
closure costs of the existing dangerous mineshaft would need to be incurred irrespective of whether or not AMANGO were
to construct a new one.

YEAR 1 YEARS 2 - 10 YEAR 10 NPV
(March 2018 to February end
(End Feb 2018) 2027 (9 years)) (End Feb 2027)

Pre-tax cash flows -130 30.43 -5
Post tad adjustment
factor (1-t) 1 69% 1
Post tax cash flows -130 21.00 -5
AMANGO's WACC is: 7%
(See Appendix 5) 0.935 6.09 0.508
-121.55 127.87 -2.54 4

BCG, Ashridge & ROCE: APPENDIX 4
Developed by The CharterQuest Institute for 'The CFO Business Case Study Competition 2017'
www.charterquest.co.za | Email: thecfo@charterquest.co.za