There are several reasons: - discount rates - mine life - iron ore price assumptions - currency assumptions - tax & depreciation assumptions - production rate assumptions - production timetable
You can tinker with all these things to give you whatever value you want. ARH use a discount rate of 8%, which for a mining company is quite low. Should be at least 10-12% until a lot of the risks are eliminated / reduced.
GBG's NPV is higher than $2.2b - much higher - if you use the ARH assumptions.
TheGimp
GBG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
