RE:RE:RE:RE:RE:RE:While you all chatter in theoryNMPappy, the NPV is EXACTLY what the name implies: the present value of all future cash flows, which includes initial capex and sustaining costs throughout the life of the project.
Therefore, if I were to offer you $1 today, the NPV of that dollar is $1.
So, if a suitor is to reveiew NPV figures, they can adjust certain inputs such as discount rate or average selling prices of metals or cost inputs, but at the end of the day if all parties can come to a general consensus of what consitutes reasonable inputs in the NPV calculations there is basically no argument what the value or worth of the project is.
The only discussion at that point is how much of a discount to NPV is reasonable for the seller to entice the buyer to pull the trigger.
All that being said, there are generally two camps you'll see here at the bullboard: one side, which includes yours truly, who believes the BoD should handle pending negotiations via the discount to NPV model and the other camp who believes the BoD should operate on a % premium to market cap.
My camp is the superior camp as we will achieve more shareholder value, however, the timelimes for a buyout wil likely be longer. Those who want a quick payday will say their camp is the superior camp, but they have to admit that the penalty for a quick buyout is sacrificing a massive amount of project value.....which I am NOT comfortable agreeing to.