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 : Trump's 12 Diamond Picks, Discussions Limited

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: maintenance who wrote (1910)1/20/1999 8:23:00 AM
From: Cohiba  Read Replies (1) of 2251
 
Hi,

Few comments:

I have a chart in front of me showing the effect of Different Discount Rates on Value. The prices I will be given are not related to WSP at all. I am just trying to find out the best way to evaluate WSP using the right method.

The chart shows a discounted value of $3 using a 10% discount rate (NPV) and a discounted value of 5$ using the ZDNPV for a mine life of 15 years. That is a big difference!

According to my source (Handbook on Canadian security analysis), under ZDNPV the median normal trading premium in the gold industry for the last ten years ('86-'96)has beeen between 10-30%. On rare occasions the premium has been below 0%, such instances usually being strong buy opportunity. In 1987 before the crash, the premium was at 133%!

I will review all this and try to make some sense out of it!

Regards,

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