GDay everyone, I hope someone can throw a little bit of good...

GDay everyone,

I hope someone can throw a little bit of good advice at me. Obviously I'm a newcomer

For my first stocks, I've gone against all advice from friends and I'm looking at types of companies that mirror up with some of my personal interests, so, my theory is I can align some of my own interest to learn more and actually enjoy the process - so I've picked explorers and small cap miners. Ouch, risky!

I'm trying to analyse things a bit and make sense of it all in my head, and currently, I'm looking at NPV, but also trying to gather some meaning from NPV and think about what it might mean for a small cap miner with a project not quite off the ground.

I'm testing out a basic calculation on Toro Energy for example, but in doing so, I've just created more questions that I can't answer, along with wondering if I've even done the sums right. Would anyone be kind enough to share some advice here please?

So to calculate the revenues, it's complicated.. one might use the spot price of the commodity, but why not look at the long term contract price which is actually quite a bit higher? For example, U spot is around $35/lb, but long term contracts are settling at $44-ish. Second to that, it's actually USD so for an Australian miner, I'd convert that to AUD and if I go with the contract price then I end up with about $60/lb for the U they sell. But I'm not really sure if I should be using which figure.

I've plugged in other figures, gathered from Toro's reports and website, e.g., the mine life minimum, the minimum resources extracted over those years, and "apparently" the "all" inclusive cost (expenditure) of $32/lb for every lb of U extracted. Now, is that for real, if it includes taxes and government royalties minus any government rebates or what, I honestly have no idea.. but how can I even do this without considering all that stuff?

So with the revenues and expenditure I've then gone on to cash flow, then cash flow to NPV over the 16 years. It comes to a figure of $480m NPV.

I'm not sure if 1) I've even done this right.. and 2) I'm not really 100% sure where to go from here to make meaning out of it. If the figure is right, then can I say the project could add $480m in value to the company, is that correct? Or am I understanding this completely wrong? I thought perhaps I could use the value of the project to consider against the current market cap, to see if the company itself was undervalued...?

Clearly I'm confused. I have read some articles on the net, but, I figure some person to person advice or comments, any small suggestions that anyone might have would be really great Here's hoping I'll attach my file too

Thanks in advance, R