Discount Rate?

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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pymmer

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Discount Rate?

posted on Sep 09, 2010 06:35PM

Could someone with more experience with mining valuation provide some insight for me in terms of the 6% discount rate. From my own experience (not mining related) if I recall correctly, standard discount rates (at least those used by governments) tend to be 7% or more. In the case of the Eagle's Nest, this would unfortunately bring down the NPV... Considering that the 43-101 update used this rate, is this the standard rate accepted for 43-101 reporting? TIA.