HCH 2.41% 85.0¢ hot chili limited

$?Bill in a ? Life mine, page-354

  1. 4,523 Posts.
    lightbulb Created with Sketch. 1520
    BBS you are correct no one buys anything for its in-situ value. The buyer has to make a profit after extracting the minerals and they will pay a discount to mitigate price risk.
    That’s where NPV comes in, mine life x 30-40% x yearly discounted cash flows
    Of course if a couple of buyers are interested there can be a premium over the calculation.
    Now work out what is worth.
 
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