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3.13%

3.1¢ hawsons iron ltd

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Vfanatix

512 Posts.

92

07/05/22

20:04

Post #: 61268758
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Originally posted by Tran: ↑

I think we both understand the discount rate the same way but the way we explain it is a little different.

In this attachment it explains discount rate as including the time-value money effect (inflation), the risk factor and the alternative return rate (the opportunity cost).

With regards to @TGF's question, the discount rate of 8% has been the common rate applied to NPV over the last 10 years or so, not just the last 2 years when covid spread out to the whole world around March 2020 and reserve banks of all countries had to quickly cut their interest rates.

Champion Iron (CIA) already applied a discount rate of 8% on its NPV figure released on 26/02/2017, long before covid hit the world in March 2020. See attachment below.

So, my answer to @TGF's question is: they will use 8% discount rate. That is the standard discount rate over the last 10 years or so, not the last 2 years. Interest rates are simply going back to the NORMAL RATES before the covid.

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...all else being equal. Males sense! Must say, the quality of posts is steadily improving once again

HIO Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
12 Upvote

0 Great analysis

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(20min delay)
Last 3.1¢		Change -0.001(3.13%)		Mkt cap ! $30.33M

Open	High	Low	Value	Volume
3.1¢	3.1¢	3.1¢	$1.083K	34.94K

Buyers (Bids)

No.	Vol.	Price($)
5	436295	3.1¢

Sellers (Offers)

Price($)	Vol.	No.
3.2¢	776904	5

View Market Depth

No.	Vol.	Price($)
5	436295	0.031
25	1494172	0.030
9	1170766	0.029
4	627000	0.028
4	76742	0.027

Price($)	Vol.	No.
0.032	776904	5
0.033	2384684	7
0.034	643991	3
0.035	148430	3
0.037	695030	4

Last trade - 10.07am 07/05/2024 (20 minute delay)


Last 3.1¢			Change -0.001 ( 3.13 %)
Open	High		Low	Volume
3.1¢	3.1¢		3.1¢	4200
Last updated 10.07am 07/05/2024 ?

HIO (ASX) Chart

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