KRR 7.69% 1.4¢ king river resources limited

By my calculations, the benefit of 1,000 years compared to 30...

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    By my calculations, the benefit of 1,000 years compared to 30 years, at a 10% WACC is less than 5% NPV. That is calculated by calculating the present value of annual cash flows. So unless we can keep increasing the rate of production at reasonable costs, then the huge asset is not worth very much extra because by the time we can convert it to cash, it will be worth much less.

    It will be very interesting to see how much it costs in capex to build something to a sufficient level where the larger resource becomes a factor compared to the others. If the production rates are similar, then cost will be the differentiator.
 
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