MCO 0.00% 11.0¢ morning star gold n.l.

discounted cash flow valuations

  1. 1,860 Posts.
    Discounted Cash Flow valuation

    for those interested in discounted cash flow (DCF) analysis as described by Wikipedia

    http://en.wikipedia.org/wiki/Discounted_Cash_Flow_Valuation

    DCF valuation is used by project engineers to determine the value of a project prior to commencement: for roads, bridges, tollways, mines, marinas, airports, railways, steelworks, smelters, production facilities, ore processing facilities ... If BHP for example was interested in purchasing a mine and processing facilities from OZL then the engineers at BHP would do a DCF valuation

    in simple terms, if the DCF valuation is greater than the cost of construction (or purchase) then the project is viable

    here's some numbers in A$ million for the total valuation of some aussie mining companies, sorted from least to greatest

    MMN 45, MYG 62, GBM 116, TRY 132, MAR 162, FML 162, CGT 192, GDR 207, SLR 230, RMS 239, MCO 482, AVO 579, DOM 586, CTO 698, HEG 1137

    E.& O.E. (based on numbers provided by the relevant companies and some personal estimates where the company does not provide the input data, and varies from day to day depending on the current price of gold)
 
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