Discount rate 5% not for Mongolian investorsWhy such a low WACC/Discount rate? BoM (Bank Of Mongolia) policy rate then 6%, inflation rate is 8.1%. This BFS is not for Mongolian investors/financial institutions.
https://www.mongolbank.mn/eng/dblistmongolbankrate.aspx https://tradingeconomics.com/mongolia/core-inflation-rate What's interest rate for Rio tinto's - Oyu tolgoi loan arrangement? "....Under the current arrangement, the rate is fixed at Libor plus 6.5%, or around 6.74% currently...."
LIBOR rate is 0.32%, the it comes 6.74% + 0.32% = 7.06%
https://asia.nikkei.com/Business/Materials/Mongolia-to-carefully-review-financing-offer-from-Rio-Tinto https://www.global-rates.com/en/interest-rates/libor/libor.aspx Who will invest in STGO when BFS results based on strange low WACC/Discount 5% ? Seeking investors from outside of our galactic system? Only aliens will agree 5%, i guess....
Extraordinary, unbelievable....