“I disagree with the second part though. Their A$390m valuation was based on $340m NPV + exploration potential - corporate. That means to get the NPV value you have to spend the cash to get the mine operating”
An NPV by design is the present value of future cash flows - outflows and inflows.. so NPV of a project should consider the US$230m outflow in capex in the early years. What the NPV won’t consider is that you have present value of ur cash balance is circa $100m. So my thoughts in valuation as always is
Prefinance: NPV project $350m / SOI 350m = $1/share
Post finance: NPV project $350m + cash raise $100m / SOI 650m is 70cps.
Obviously the numbers don’t align exactly as above but my point is you can’t dilute the share base down to 650m and not then include the cash raise in the NPV.
“I disagree with the second part though. Their A$390m valuation...
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