RE:RE:RE:RE:RE:RE:RE:RE:Buy out. Net Present Value (NPV) is one of the favourite valuation metrics used to value a Mining Operation. Simply put it takes the sum of all the future projected cash flows and brings them back to today using a Present Value formula that discounts for time and inflation. That present value number is then discounted for risk, usually around 7% to 10% and poof you have your Net Present Value of the mine. Share prices generally over time will track towards and exceed the NPV of a mine as it de-risks and approaches production.
I will give you an example.......Ecobalt Solutions in their last BFS had a NPV of $185,000,000 CDN$.
Now their current market valuation is $215,000,000.....so as you see todays Market Cap exceeds for ECS exceeds their NPV.
Now FT has a current Market Cap of only $90,000,000. I suggest we are going to have a new NPV of $500,000,000 to $600,000,000 with our updated BFS. So as we de-risk the mine with the road announcement and financing FT will move towards and could exceed our new NPV.
................................................... TODAY FT IS WAY UNDER VALUED!!!.............................