RE:RE:RE:RE:RE:RE:Be patient Again, I'm going to ask you and others, "what is Rio's cost of capital"???
Why do we use 8% discount for a resource that is pretty evenly split between gold and copper. Why not use 6%...and even above and beyond that what is Rio's cost of capital? Have you researched that? I believe its about 4.5%.
So in negotiations with someone like Rio we would want to say, "yes the NPV is $2B.....BUT that is using very conservative metal prices and ....your cost of capital is no where near 8%!"
How much does changing discount factor from 8% to 6% add to NPV? How much does changing from 6% to 4.5% add to NPV.
To say Rio wouldn't make money paying $2B is just not accurate in my opinion based upon current facts as known. Even if it were correct....let Rio make that comment in internal negotiations with WRN with facts on WHY.
Regardless, you heard it 1st from Sooner - $6 USD /share and I'll be happy with that outcome in 1 year time!!!!