The value of the mine is based on the IRR attributable to the mine. That is production over time at a given REE price and capex/opex costs associated with that development. When you develop a mine you must meet your hurdle rate of return. You can't just take the resource and multiply it by price to come to a value. The value of the mine is the profit to attribute from the mine going forward. I hear the comment about the other producer - same same, the market is giving it a value because the discounted cash flow of that mine when operational is assumed by investors to meet the hurdle rate of return. In a nutshell without profit the mine is worth nothing, and by profit I mean future projections of profit. So LYC is trending up because the market is saying that its profit over time is expected to grow. I don't know what else to say, but that is how stockbrokers etc value a mines worth (including in any takeover battle). It is no pint looking at one side of the equation without the other - if I ever get around to it I might do my own discounted cash flow model (an IRR model) but with three year old twins finding it hard to model anything yet.
- Forums
- ASX - By Stock
- Restate In-Ground Asset Value
The value of the mine is based on the IRR attributable to the...
Featured News
Add LYC (ASX) to my watchlist
|
|||||
Last
$6.42 |
Change
0.015(0.23%) |
Mkt cap ! $5.977B |
Open | High | Low | Value | Volume |
$6.47 | $6.48 | $6.34 | $12.65M | 1.969M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
24 | 20847 | $6.41 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.42 | 2399 | 10 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
28 | 24558 | 6.440 |
17 | 73394 | 6.430 |
14 | 37282 | 6.420 |
11 | 98625 | 6.410 |
14 | 21171 | 6.400 |
Price($) | Vol. | No. |
---|---|---|
6.450 | 15548 | 20 |
6.460 | 19777 | 21 |
6.470 | 44508 | 20 |
6.480 | 41604 | 19 |
6.490 | 103912 | 14 |
Last trade - 13.05pm 12/07/2024 (20 minute delay) ? |
Featured News
LYC (ASX) Chart |