I disagree with that personally. D&A is a non cash item, it's literally just benefiting from the capex you have already spent but makes NPAT look bad.
Really you should be using a multiple of FCF (analysts use DCF valuations - discounted cashflows) where your multiple is a conservative number less than current LOM.
You don't want to be paying for your whole production profile. If LOM is 10 maybe use 6 as examples of numbers.
Anyways RVR this quarter produced EBITDA of $12.5m. Cash balance increased $8.5m with some of that going back into development capex. Even if you assume FCF was $5m if they can repeat this year on year that gives them FCF of $20m. Apply a 5x multiple (I think Far West had a LOM of 7-8 years currently - don't hold so could be wrong here) and you get $100m. Similar to your valuation but I feel like formed in a more robust method. Remembering that EV is currently only in the 70's as they have large cash on hand. So definitely room to grow and assumptions weren't crazy bullish.
Extra upside comes from metal prices rising (which I think will happen) and increasing LOM and/or grades.
Anyways, just trying to add to discussion as an outsider, you guys don't have to listen
