the adani royalty

Brydos

Thanks for your previous posts on the royalty.

I quote from the latest Investor Linc newsletter-

"Drilling, Mine Planning and EIS
Since August 2010, Adani has conducted an extensive drilling campaign, progressed mine planning studies and started work on the Environmental Impact Statement (EIS) for both the mine and the rail. The draft EIS was been submitted at the beginning of April this year.
Separately, Adani has commenced an extensive exploration programme on the asset in order to finalise the mine plan ahead of development and construction work in 2013. First production from the Carmichael tenement is still anticipated towards the end of 2014 with the ramp up to peak production of 60 Mtpa expected over approximately eight years."

Looking forward 12 months (say July 2013) when LNC may like more cash to fund expanded worldwide operations, and the Adani mine is closer to production (even if 1 year after the anticipated start date above), and LNC wanted to sell the royalty then, would it be reasonable to use a lower discount rate for the DCF because of the greater certainty of the royalty commencing within a short time frame ?

Say 7% or 8% ??? If this was the case, wouldn't the overall value of the royalty increase substancially ?

I would be interested in your comments and proposed valuations for July 2013.