RE:23.8 cents a share per year at $2.50 copper LOMAlso remember that an NPV 8 assumes anything past year 10 (roughly), is not worth anything when discounting back to today.
That might be fine for a project that has a 10 year mine life, but when something will produce for decades, value is lost. That is why Friendland says NPV is stupid and that the Japanese and Chinese don't value long-life strategic assets using this calculation.
Discounting at 8% is similar to saying that inflation will be 8% for your retirment plan. I need to plan on your expenses increasing at a rate of 8% a year, in order to determine what level of savings you need to live off (NPV). I understand the analysts are using 7.5% - 8.0% to factor in the risks involved, but when something is close to producing like our projects are, and the COST OF MONEY is, like Robert said, essentially free (lets just say 3%), why would you discount the cashflows so heavily?
I am anxious to see the new Platreef numbers, and I hope they include some metal prices that are closer to spot and not "consensus" future prices as they are rarely correct.