10% discount rate, $2.2b npv , page-12

leonpl

If you do this stuff for living:
Give us some examples of NPV calculations in mining business, where a junior considered your point in its NPV calculations.

In my memory i can remember discount rates from 7% until 12% (mostly used when a sovereign risk is given) for npv calculations in mining business.

NONE of them had ever used a discount rate that encounters the yield expectations of shareholders. And approx. 95% of them had the same debt/equity mix comparing to FMS.

But please feel free to give us precise examples of juniors using a higher discount rate > 10%.