SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: aknahow who wrote (18254)8/15/2006 11:36:17 AM
From: jpthoma1  Read Replies (1) of 78409
 
Hello George,

You are right: prédict future prices is a difficult task.

The "financial theory" says that you can use past prices to predict future ones.

So, if you look at historical nickel prices, you can analyse the behaviour of prices in relation with demand and supply, ajust for inflation and any other important change (ex: China demand, US$ value) and make some future prediction.

You can then use optimistic, realistic and negative scenarios to calculate net return of the project.

But be sure that financiers will look at your negative projections and still cut 25% of the cash flows!

;o)

JP

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext