Newmont AFE Cover Template, v2.

00

NOTE: The template below is provided as a basic economic model; contact the Economic Evaluation Team for economic models with additional detail. If a different model is used, this page of the AFE cover template does not need to be completed,
but a summary page with a similar level of detail to this page should be attached to the AFE Business Case as an Appendix, and the key driving factors of the return metrics should be listed and described in the appropriate sections of the AFE.
For assistance on economic models, please contact your Regional Capital Manager

Authorization for Expenditure (AFE): Page 4 - Economic Analysis

Planning & Strategy-New Videoscope

AFE Name:
Region

South America

Site

AFE #
Portal ID

Yanacocha

TBD1141028
-

DETAILS ON ECONOMICS (USD)

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

$62K
$5K
$67K

Project Expense Cost Breakdown

Revenue Total

Revenue / Savings Drivers

Avoid Rent Cost
Avoid Repair Cost
Revenue Total

$29K
$30K
$59K

$29K
$30K
$59K

$29K
$30K
$59K

$8K
$52K
$13K
$39K
($12K)

$8K
($8K)
$13K
($21K)
$6K

$8K
$52K
$13K
$39K
($12K)

$8K
($8K)
$13K
($21K)
$6K

$8K
$52K
$13K
$39K
($12K)

$67K
($67K)
($67K)
12.5%

($12K)
$27K
$40K
$40K
($31K)

$6K
($15K)
($1K)
($1K)
($32K)

($12K)
$27K
$40K
$40K
($4K)

$6K
($15K)
($1K)
($1K)
($4K)

($12K)
$27K
$40K
$40K
$18K

$18K

$18K

$18K

$18K

$18K

$18K

Project Capital Cost Breakdown

Videoscope
Duties & Freight expenses 8%
Capital Total

Operating Expense (vs. Do Nothing)

EBITDA
DD&A
EBIT
Corporate Tax (30.0%)
Add'l Local Tax Rate (enter % if applicable)
Other Taxes (enter as negative $US)
Total Taxes
Net Income
Operating Cash Flow (add back DD&A)
Free Cash Flow
Cumulative Discounted Cash Flow
Discount Rate
Return Metrics

NPV
PI (NPV / IV)
MIRR
Discounted Payback (Date)
Discounted Payback (Years)

Printed: 09:02 a.m., 12/05/2014

$18.02K
0.27
15%
mar, 2017
5.1

AFE Start Date (enter on Pg 1):

ene, 2012

Payback estimates are calculated from this AFE's start date (i.e., date of first negative cash flow, not date of startup, commissioning, or positive
cash flow). Use "Request Date" on the top of Page 1 to set project start date.

Confidential. Draft. For discussion purposes only.

Page 1 of 3

Newmont AFE Cover Template, v2.00

NOTE: The template below is provided as a basic economic model; contact the Economic Evaluation Team for economic models with additional detail. If a different model is used, this page of the AFE cover template does not need to be completed, but a
summary page of a similar level of detail to this page should be attached to the AFE Business Case as an Appendix, and the return metrics should be listed and described in the appropriate sections of the AFE.
For assistance on economic models, please contact your Regional Capital Manager
Neutral Case

PI (NPV / IV)
MIRR
Discounted Payback (Date)
Discounted Payback (Years)

Robust Case
Distressed Case

0.27
15%
mar, 2017
5.1

Paste Cumulative Discounted Cash Flow for Base Case in the green cells below. If upside & downside cases were calculated, paste those too.

Cumulative Discounted Cash Flow

Neutral Case
Robust Case
Distressed Case

ene, 2012
($67K)
-

dic, 2013
($31K)
-

dic, 2014
($32K)
-

dic, 2015
($4K)
-

dic, 2016
($4K)
-

dic, 2017
$18K
-

dic, 2018
$18K
-

dic, 2019
$18K
-

dic, 2020
$18K
-

dic, 2021
$18K
-

dic, 2022
$18K
-

dic, 2023
$18K
-

Cumulative NPV Curve

$30K
$20K
$10K
($10K)
($20K)
($30K)
($40K)
($50K)
($60K)
($70K)

Neutral

Printed: 09:02 a.m., 12/05/2014

Robust

Distressed

Confidential. Draft. For discussion purposes only.

dic '22

dic '21

dic '20

dic '19

dic '18

dic '17

dic '16

dic '15

dic '14

dic '13

dic '12

dic '11

($80K)

Breakeven

Page 2 of 3

Appendix01:

Estimated Cost Avoidance by Inspections With Videscope

Fleet

CAT793B
CAT793B
CAT793B Total
CAT793C
CAT793C
CAT793C
CAT793C
CAT793C Total
CAT793D
CAT793D
CAT793D
CAT793D
CAT793D
CAT793D
CAT793D Total
Grand Total

WO's with
problems found
Equipment
by internal
leaks

Date

Results of Inspection

Fleet
Cost of
$ Hr.

Avoided time machine stop

times

Remanent
Hours After
Videoscope
inspection

HT071
HT076

YA244760
YA251266

27/01/2011
05/05/2011

Changeout of rear Core Aftercooler

Changeut of Engine

30
30

$748
$748

13078
9749

HT106
HT110
HT116
HT121

YA248162
YA256256
YA239921
YA239962

03/03/2011
18/06/2011
02/12/2010
03/03/2011

Change out of Cilinder heads # 05 & 09

Changeout of rear Core Aftercooler
Changeut of Engine
Change out of Cilinder heads # 10 & 12

30
30
30
30

$762
$748
$762
$762

8348
2753
14000
11219

HT140
HT136
HT142
HT144
HT147
HT153

YA239210
YA258226
YA243095
YA230259
YA241065
YA238866

23/11/2010
07/08/2011
10/01/2011
11/08/2010
15/12/2010
19/11/2010

Change out of Cilinder head # 14

Changeut of Engine
Changeut of Engine
Changeut of Engine
Changeout of Cilinder Head Gasket #09
Change out of Cilinder head # 14 & Aftercooler

30
30
30
30
30
30

$762
$762
$762
$762
$762
$762

7540
14000
14000
14000
13001
7737

Production Cost Avoidance in 2011

Fuente: Planning & Estrategy_Equipment Health Department (2010 & 2011 year data)

Total Cost Avoidance

$22,450
$22,450
$44,900
$22,855
$22,450
$22,855
$22,855
$91,016
$22,855
$22,855
$22,855
$22,855
$22,855
$22,855
$137,131
$273,047

$273,047.40