Mineral Evaluation

[edpresley]

Current discount rate utilized in mineral property valuation. Percent, why this rate, other rates used.

 

[isnak]

The question of % is not complete. What x% is refered to?

 

[mabn]

Mining properties usually use a risk-adjusted discount rate.

As a guideline:

Expansion of a project : 14%
Developing a new property, same commodity (domestic) : 18%
Developing a new property, new commodity (foreign) : 25%