RE:RE:Simplified Analysis, sans NPV
Thanks for asking.
I didn't include much explanation on purpose since I wanted to leave it as a bit of a puzzle for entertainment purposes, maybe one that didn't need much explanation, hopefully. In any event....
Yes, it's just a quick approximation of fair share price working backwards from the After-Tax numbers in the feasibility report, coupled with my own risk & rate of return numbers. I thought this method would be fairly accurate and reasonably valid – simply asking: how much are you willing to pay for this much in return? To me, that would be all that is necessary to determine/predict share price. The level of financial detail in the report makes this straightforward.
So, it's just a different perspective I thought I'd share and see if anyone had any comments.
I'd be curious to know if anyone else has looked at it this way and what they came up with.
BTW, keep in mind that I'm using some rate-of-return values based on my perceived level of risk and associated comfort level. YMMV. To that end, I'm largely already giving the project credit for permits and initial financing with regard to de-risking.
And it's based on $CAN, although the more optimistic investors can interpret the numbers somewhat closer to $US.
Cheers.