RE:RE:Takeover PredictionThanks for the info SGCGRIMREAPER. I think the the stated price of $4.50 CDN is in line with NAV values after factoring in the appropriate adjustments:
- Typically, 25% to 50% of NAV for PEA Study,
- 50% to 75% of NAV at a PFS level. Where NPV and IRR have more certainty and measured and indicated resources can be converted to Proven and Probable, or
- 75% to 90% of NAV at a Feasibility Study
"Net asset value" is the net present value (NPV) or discounted cash flow (DCF) value of all the future cash flow of the mining asset less any debt plus any cash.
The formula is as follows:
P/NAV = Market Capitalization / [NPV of all mining assets - net debt]
NAV is a sum-of-the-parts approach to valuation, in that each individual mining asset is independently valued and then added together.
Corporate adjustments are made at the end, such as head office overhead, debt, or financing.