Yes an 8% discount rate is silly when cash in the bank is getting 5%, but I think you'll struggle to find any other gold developer using >8% in their studies (most are still using 5%).
The project is so far from construction/production (and can't be financed) that none of the academic discussion of valuation really matters right now. I don't use the above simplified model as a basis for any decisions. I'm more thinking in terms of how the market is valuing comparable stage/scale/complexity projects. AUC appears to be trading ~0.2 of NPV. I think STN will be closer to 0.1 when the PEA comes out.
Ann: Apollo Hill Gold Resource Upgraded to 1.84Moz, page-32
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Last
23.0¢ |
Change
-0.005(2.13%) |
Mkt cap ! $71.04M | |||
| Open | High | Low | Value | Volume |
| 24.5¢ | 24.5¢ | 23.0¢ | $20.41K | 85.96K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 13333 | 22.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 24.0¢ | 40000 | 1 |
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| Last trade - 15.21pm 13/11/2024 (20 minute delay) ? |
| STN (ASX) Chart |