Broker reports, page-32

The cost of capital and the discount rate are not the same. That's a narrow view from a corporate finance text book.

This was the point I was trying to make earlier when discussing the resource/reserve quality and refractory nature of the ore. Gold mining is a risky business, gold mines in WA have failed (or near-failed) multiple times in the last 3 years - BLK, DCN, GCY, MOY take your pick. Many of these have related to poor reserve estimation. If you were a big company taking this company over would you adjust for the possible technical difficulties in processing refractory ore ? You bet you would.

You can adjust the risk multiple ways in the valuation. Argonaut also did the 20% discount for an early stage project, which in my view is way less than it should be for a pre-scoping study.