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Kookaburra777

1,736 Posts.

106

19/10/23

16:52

Post #: 70432216
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Originally posted by SeasofSand: ↑

Hey Kookaburra,

The DFS does not appear to include debt financing costs because the capex figures are front loaded in the first two years.

Debt financing costs aren't needed to prepare a discounted cash flow because of the front loaded capex costs and discount rate. The NPV is a summation of each year's cash flow after the discount rate is applied, meaning it includes the capex figures in the first two years as opposed to being spread out over multiple years.

It is important to note that although the debt financing costs are higher when spread over a greater time period, this is offset by the high discount rate applied to the outer years.

The IRR can be calculated by editing the discount rate to produce an NPV of $0.

With more clarity on the project's debt structure, a more accurate NPV could be calculated. However, given MNB is likely to be valued on a PE ratio when it starts production, I don't think it would produce any real value.

I hope this answers your query.

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Totally. Much thanks ...

MNB Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 5.6¢		Change -0.002(3.45%)		Mkt cap ! $48.44M

Open	High	Low	Value	Volume
5.6¢	5.6¢	5.5¢	$9.232K	166.2K

Buyers (Bids)

No.	Vol.	Price($)
2	99963	5.6¢

Sellers (Offers)

Price($)	Vol.	No.
5.8¢	252589	4

View Market Depth

No.	Vol.	Price($)
2	99963	0.056
2	531794	0.055
1	50000	0.054
3	165000	0.053
5	325230	0.052

Price($)	Vol.	No.
0.058	252589	4
0.059	159000	3
0.060	100000	1
0.061	156286	2
0.063	75000	3

Last trade - 15.37pm 03/05/2024 (20 minute delay)


Last 5.6¢			Change -0.002 ( 1.82 %)
Open	High		Low	Volume
5.6¢	5.6¢		5.5¢	86140
Last updated 15.37pm 03/05/2024 ?

MNB (ASX) Chart