Shelf prospectus $200M vs BFS WACC 5%Funny. Who did BFS? Who calculated NPV based on discount rate 5%? TRQ NI43-101 selected 8% as discount rate over mine life. Mongolia central bank's policy rate 6%. Inflation average 3%-5%. Rio's lenders interest rate is LIBOR+6.5%.
When discount rate lowers then IRR% up. Kind of adjustments made when STGO's management knew BFS is not feasible. Average WACC for Mongolian investors is 12%. TRQ's 8%. Then average is 10% is optimal.
Means IRR% is around < 33%, not 66%. Interesting, who will trust in this BS & invest? Where is MSE IPO?