Hi KiddoNPV stands for "Net Present Value" which means what the...

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