Is the Net Present Value of a Preliminary Economic assessment Indicative of the Market Value of a Mineral Property?
During a conference presented by the Management and Economics Society of CIM, Mr. William (Bill) E. Roscoe, PhD, MSc, BSc (Eng.) observed that:
The NPVs in the PEAs were significantly higher than both the market values of the transactions and the adjusted market capitalisations. We concluded that to bring the NPV into line with the market value and market capitalisation, a discount rate in the order of 15% to 20% would be required.
Full presentation will be available soon at : www.cim.org