JRV Cobalt, page-322

I find it interesting that the EBITDA margin is 52% and EBITDA per annum is USD54.8 million yet the NPV (@8% pst tax) is only USD95.7 million. I would have thought that the NPV would be much much higher but then again I dont know what other cash outlays there are that are excluded from EBITDA but included in the NPV calc. Regardless they must be significant.

If you NPV USD 54.8 over 7 years at a post tax discount rate of 8% then you get USD285 million less undercounted capex of USD78.4 million = USD206.6 million versus USD95.7 million. Quite a substantial difference for interest, tax and other non EBITDA costs. I also assume EBITDA is constant per years whereas it probably higher in the latter LOM years where discounting has more impact

Comments appreciated