"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
14.0¢ |
Change
0.005(3.70%) |
Mkt cap ! $40.11M | |||
| Open | High | Low | Value | Volume |
| 13.5¢ | 14.0¢ | 13.5¢ | $802 | 5.754K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 14865 | 13.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 14.0¢ | 19859 | 1 |
View Market Depth
| Last trade - 16.10pm 08/10/2024 (20 minute delay) ? |
| FML (ASX) Chart |