"1. At a current gold price of circa $1658 USD and a prevailing exchange rate of 1.05, FML has a current NPV of around 8.02c at a 5% discount. Given this is the case, then why would FML represent a bad investment at 3.2c"
Excuse me, but is FML making a net profit after all costs have been accounted for and at the moment actually adding a positive amount of cash to the balance sheet?
If not, it can not have a NPV that is positive.
And second, why use a ridiculous 5% discount rate when an investor can get almost get that rate in a riskless term desposit?
Gold mining is a risky business and a more realistic rate of 15% or higher should be used.
bring back 2009 ?, page-27
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Last
12.5¢ |
Change
-0.010(7.41%) |
Mkt cap ! $35.81M | |||
| Open | High | Low | Value | Volume |
| 12.5¢ | 12.5¢ | 12.5¢ | $7.143K | 57.14K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 165050 | 12.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 13.5¢ | 90000 | 1 |
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| Last trade - 10.26am 30/07/2024 (20 minute delay) ? |
| FML (ASX) Chart |