Tue, Jul 22, 2014, 11:12 PM EDT - U.S. Markets closed


% | $
Click the to save as a favorite.

Silver Wheaton Corp. Message Board

mblimon2000 1 post  |  Last Activity: Jun 25, 2014 8:24 AM Member since: Mar 18, 2003
  • Reply to

    has coeur negotiated at just the right time

    by edmundaronson Jun 24, 2014 6:18 AM
    mblimon2000 mblimon2000 Jun 25, 2014 8:24 AM Flag

    That $25 mln NPV is a bottom value. Assumptions for NPV calculation are today's silver and gold price as well as a discount rate of 10% per annum. In my opinion that NPV will end up much higher when we will look back in ten years time.

    I wonder why a 10% discount rate is taken. The discount rate is the rate of return that could be earned on an investment in the financial markets with similar risk or the opportunity cost of capital. 10% in today's deflationary market with a "fixed" zero interest rate for the next few years sounds like a bit out of proportion. A discount rate of 3% would be closer to reality right now. But the big illusion is in taking today's gold and silver price as the basis. Margins are right at the bottom right now and can only go up.

26.49-0.22(-0.82%)Jul 22 4:02 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.