ENERGIZER RESOURCES INC T.EGZ

Is there a standard pea discount percent

[MrAnderson]

I noticed that egz did the pea with a 10% discount rate, but i see other jr resource companies using 8%, 7% and even 5% now. That can make a big difference when trying to compare the numbers. Is there a standard to help with that comparison?

[shav3]

I prefer to see 10%.  That shows me a management group that's realistic and not trying to puff the goods.  You see lots of 5% and 7% numbers out there, but  IMO  10% better reflects the risk of moving the company to production.

[tiger6301]

Hi Shav3, I completely agree with you, and it shows how is the company is conservative, agreessive, or promotional on their project, and you have to be careful to see what parameters they are using to get their PEA. tiger

[MrAnderson]

Thanks, you helped support my expectations as well.  So a number of other companies have slightly inflated peas.  I do like it when they post those grids showing variations in pea based on alternate discount rates and commodity prices.

[frewil1]

Ya and EGZ has one of the best PEA's of any resource company out there and not just the graphite sector.

[Doingmybest]

And they have an NI 43-101 for the resource.  The numbers are good and the company is doing its best to secure legitimacy.  That's why the 2 firms following EGZ have put prices of .30 and .35USD for now. I trust that a better than expected FS or offtake will make that number larger. 

[repap_nb]

I tried to replicate the PEA with a quick DCF in excel. Here is what I am getting for pre-tax NPV's based on the discount rates shown. As you can see I'm not exact to the PEA but ballpark (I was using the Feb 2013 data) https://www.energizerresources.com/2013/329-energizer-resources-announces-positive-preliminary-economic-assessment-of-the-green-giant-molo-graphite-project 6% 663000000 8