Interesting to note that on the NPV valuation which is taking existing cash flows and discounting them back to todays values it is justifyable at a 60% premium.
Thats just the way NPV cash flow discounting works.
But on a 2nd half drilling programme where anticipated future cash flows are factored in its only 5%.
I would have thought this method of valuation is really only true when valuing stocks such as Banks where the cash flow is accurate and really properly forecasted.
Oh well .... you live and learn I suppose.
But there are other ways to value.
HDR
hardman resources limited
