again as expected, you didn't and possible will never give a detailed calculation on how you got the 5m number. It is hilarious, it is almost certain you are doing this purposely, even you cannot find any logical support for your claim, you still trying hard to mess it up.
regarding EV. you can use an earnings valuation method for a mine developer, but it may not always be the most appropriate or accurate approach, especially if the mine is still in the development phase. Here's why:
1. Pre-production phase: Mine developers often don't have significant earnings before they reach production. If the mine is in the exploration or development stage, traditional earnings-based valuations (like P/E ratios) may not be relevant since there may be little to no earnings to evaluate.
2. Cash flow focus: Instead of an earnings-based valuation, a discounted cash flow (DCF) analysis is often more appropriate for mine developers. This involves projecting the future cash flows the mine will generate once it's operational and discounting them to present value. Cash flow-based methods take into account the high capital expenditures (CapEx) involved in developing a mine and the future revenues once production starts.
3. Net Present Value (NPV) and Internal Rate of Return (IRR): These are commonly used valuation metrics for mine developers. NPV calculates the current value of all future cash flows generated by the mine, while IRR estimates the expected return on the project. These metrics are highly important for evaluating the potential profitability of a mine.
4. EBITDA multiple: Another alternative is using EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) once the mine is closer to production or in early production stages. This focuses on the operating profitability, excluding the non-cash expenses and financing costs that might distort the earnings.
In summary, while earnings valuation might become useful later in the mine's lifecycle, for a mine developer, cash flow-based methods (such as DCF, NPV, and IRR) are typically more appropriate during the early stages of development.
you trying to mess up the techniques with the mining phases, for what? We all know.
Expand
(20min delay)