In theory this is all well and good but unfortunately it doesn't happen.
In theory, the SP should hit the NPV equivalent and then slowly drop to 0 as dividends are paid throughout the life of the mine. This is of course only true if no other discoveries are made.
There is always uncertainty in a project, even when mining, and that's why the SP will always be at a discount to the NPV (even when it is conservative)
Unfortunately stocks aren't fairly valued in today's market.
- Forums
- ASX - By Stock
- long poetic missive
In theory this is all well and good but unfortunately it doesn't...
-
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CQT (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
MTL
MANTLE MINERALS LIMITED
Nick Poll, Executive Director
Nick Poll
Executive Director
SPONSORED BY The Market Online