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Meridian Mining UK Societas T.MNO

Alternate Symbol(s):  MRRDF

Meridian Mining UK S is focused on the acquisition, exploration, and development activities in Brazil. The Company is currently focused on resource development of the advanced Cabaçal VMS gold-copper project, the regional scale exploration of the Cabaçal VMS belt, the exploration in the Jaurú & Araputanga Greenstone belts all located in the state of Mato Grosso and exploring the Espigão polymetallic project in the State of Rondônia Brazil.


TSX:MNO - Post by User

Bullboard Posts
Comment by lechmeiron Jul 25, 2016 3:49pm
81 Views
Post# 25082625

RE:Resource size - PEA ...

RE:Resource size - PEA ...


"$110,000,000 on a 10% discount model or $1.1 billion without the discount calculated in"

You're not doing NPV correctly....   Net present value is what of a future cash flow stream is worth based on the time value of the money and the length of time over which you're expecting to receive it.

If you're expecting to receive 1 billion next year at a 10% discount rate it's value today is $900 million... if you're going to get 200 million a year for the next 10 years and your plant is costing you say 10 million, you have a NPV of $1.2 billion.  We're hoping our numbers are more robust than that.  And our mine life is much longer.

Net present value calculation simply assumes the money you get in 10 years isn't worth as much as what you get today.  (obvious...  I know).  I might also point out  that 10% is pretty high in this day and age...  Lower discount rates make the numbers higher for us.

Good calculator here:

https://www.investopedia.com/calculator/netpresentvalue.aspx
 

Bullboard Posts