RE:RE:RE:RE:Junior attempts a build - Argonaut Gold edition - A Revisitthe next question becomes --- what are the inputs in the NPV calculation?
What are the "long term" metal prices to be used?
The acquiring company likely could care less about current spot...let alone assumptions in our FS.
What discount factor to use? We used 8%...many companies use 5%. I've been told that Gold usually uses 5% but base metals 8%.
Changing from 8% to 5% i believe adds close to $1B in NPV to Casino. Again, the acquiring company probably has their own rates to use and has some type of "hurdle" rate used where they need at least a X year payback...or at least a Y% IRR, etc.