CLA-mining considerations, page-153

Not really how it works for a couple reasons.
1. That doesn't factor in any sort of time value of money. Say $50m EBITDA in 10 years isn't the same as $50m EBITDA now.
2. There is no risk adjustment to that kind of method for possible changes in commodity prices, production rates etc
3. If you don't replace reserves 1:1 every year your LOM decreases and so does your valuation even if generating the same income.
4. Obviously a company with a 50 year LOM isn't worth 2.5x one with a 20 year LOM in my opinion. Especially in a commodity like Cobalt