RE:RE:K-K Worth Approximately $6.27 CAD ShareBroomer,
It's a discount rate. The Company provides various discounts to arrive at their Net Present Value. The undiscounted cash flow is discounted to present time at a given rate. That's because a dollar in 30 years is worth less than a dollar in your hand today. There is a time value of money. The higher the discount, the lower the share valuation. All values come from the most recent Company Economic Analysis for a 12 Mtpa mine from November 2017.Then I tacked on an additional 25% to account for expansion of the resource. Had I used the standard base case scenario of 8% provided by the Company, it would have been far less value per share.
The base case scenario from the Company is $7.179 B for the 44 year life of mine.
According to the Company, at $3 copper, using an 8% discount rate for NPV:
($7.179 B x 39.6%) / 790 million shares out = $3.60 share.
By decreasing the discount to 6% and adding 25% expansion to the resource, it nearly doubles the value. Most financial analysts would consider that generous. Once again, this is from the Company's own recent study. You may refer to other reports by various analysts, but I prefer to rely exclusively on the Economic Analysis from the Company itself compiled by Independent Qualified Professionals after years of work. If you consider that foolish, then I suppose you're entitled to your opinion.