you are right its hard to compare like for like and teh discount rate is the last of the user's risk assessment variable. as u point out there is capex contingency already in, the consultants used are experienced so it comes down to using a rate that depends on sector (gold price is good for next 5 years and any dip could be covered by hedging), operational risks remaining (maybe only pit design /dewatering?) and lastly would be a touch of personal risk profiling as an investor.
On reflection, and further googling, 15% is being very conservative, but 8% is still to my mind assertive of RED, but good on them for having the spine to use that, presumably instos were happy.
Still..the diff between 8% and 15% is 8c on current SP so plenty of room for re-rating.
Did you check those eps number again, beatle?
RED Price at posting:
$1.55 Sentiment: Buy Disclosure: Held
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