dfs is released!!!, page-61

Hi Kiddo

NPV stands for "Net Present Value" which means what the projects value to the company is today.

This is calculated using a DFC "Discounted Cash Flow" forcast.

As per the DFS Thor has used a discounted rate of 8% to get A$28 million which equates to ~ 2.7c P/S.

However the DFS also included a NPV using value a 10% and 5% DFC as per below.

-- All equity Net Present Value (NPV) of A$28 million at a discount rate of 8% (A$23million @ 10% or A$36 million @ 5%) after tax.

A$23 million equates to ~2.2c P/S and A$36 million to ~3.5c P/S.

Generaly the closer a company is to completeing a project the lower the discount.

IMHO without offtake agreements and funding in place the higher discount rate of 10% should be applied if not an even higher amount of around 12%, which seems to be reflected in the current SP.

However once offtake agreements and funding are in place the lower DCF rates should be reflected in the SP.

Regard

Gero