1. NPV is basically a means to measure a project's future viability to the company after future costs and returns are estimated. If it is a positive value as with GBG, then the project is deemed to be worth undertaking.
It's a means of estimating what the project is worth to the company on a discounted basis which on 12mtpa is approx. $4.00 per share. I'd estimate the new BFS will reveal a figure far in excess of that, allowing for production increases, price increases and Oakajee approval since the first BFS. Increased costs will impact on this though.
It is not a sum value of their earnings from the project but the significantly positive outcome dictates that it is infact well worth proceeding.
2. As Gimpoo and Riddick said- many variables involved and they are all just estimates that may vary significantly over the time of the project.
3. Life of Mine free cash flow is the cashflow the company retains after all expenses including interest, tax and dividends. It is a valuable means of estimating a company's future retained profit potential as it takes into account all expenses.
GBG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
