A discount rate of 5% over 5 years translates to a NPV of 77% of the FCF. A discount rate of 8% translate to a NPV of 66% of the FCF.
There is no justification to use an discount rate of 8% anyway when 5% is standard in the gold industry.
What is more of an issue for us shareholders right now is that the company released an updated reserve number and an updated and optimised mine plan, but didn't provide us with an update to the project financials. How are we supposed to decide as shareholders if the offer is reasonable when the company is holding back the updated financial model?
A discount rate of 5% over 5 years translates to a NPV of 77% of...
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