I've always used 12.5%. I also knock 10% off spot prices of commodities. So that moves the effective discount rate even higher.
Single digit discount rates, in my opinion, don't accurately reflect the risks involved in the resource sector. An 8% discount rate is fine for making widgets but is probably not a true reflection of gold mining.
I've always used 12.5%. I also knock 10% off spot prices of...
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