Hi Guys, i'm building a NAV for a mine for equity research and it has a LOM of 95years
In this scenario, would i model the entire 95 years till depletion or do like 20 years and then for the remainder of LOM as a “steady-state annuity”?
Thanks!
Trending Content - Equity Research Forum
| +13 | Is Equity Research Dying - Where Are the Future Opportunites? | 4 | 1d |
| +10 | Associates who stuck around for > 5 years working for the same analyst. Why? | 4 | 6d |
| +9 | UBS ER SA27 Superday | 7 | 3w |
| +9 | Detailed Revenue and Cost Builds | 3 | 1w |
| +7 | Analyst with no coverage or ranking | 5 | 1w |
| +7 | Uiuc or Ross or UChicago | 8 | 2w |
| +1 | IB SA -> ER FT | 4 | 2w |
| 0 | Equity Research Rankings | 1 | 1w |
Career Resources
Every year
Thankyou!
And one more question. When calculating Corporate-overhead NPV, do i run that flat over the full 95 LOM or assume that once the mine is up and running (maybe model out till 10 years?), all corporate startup costs vanish?
Thanks!
As said above, you should model the LOM, if available.
For the corporate overhead (cost from the corporate, off-site), you should also model it on a yearly basis. If your model is in real terms (usually it is) you can take a flat value.
Please be careful with consistency in the model: if its real (nominal) terms, use real (nominal) prices, opex, capex, discount rate etc. Also, be careful if you are using a FCFF discounted by WACC or an Adjusted Present Value (FCFF discounted at unlevered equity rate + tax shield discounted at cost of debt). APV is quite common considering that you usually value as a sum-of-the-parts and you could have different debt structures along assets and the HoldCo due to Project Finance or Bond issuances
Omnis in necessitatibus quo veniam voluptatem. Tempora facilis excepturi facere qui necessitatibus et sapiente reiciendis. Quidem autem libero atque modi. Et et provident ratione nihil quos aperiam tenetur. Occaecati tempore necessitatibus non est perspiciatis.
Repudiandae illo aliquam veritatis eos aut et. Enim nihil optio praesentium consectetur. Autem vitae ea non earum placeat et. Consequatur dolore eos dolorem delectus. Porro sed enim modi vero rerum eius voluptatum. Quae eveniet et velit culpa harum.
Voluptates aliquam quo et qui cum magni ab et. Fugit sequi fuga laboriosam saepe possimus corporis. Et ut eaque at sit ducimus aut. Dolores adipisci illum aliquid. Reiciendis voluptatum rerum amet aut tempora.
Nihil ipsa ducimus asperiores. Recusandae aliquid nesciunt sapiente ut dolor autem et. Illo iste ducimus voluptatum consequatur nobis magnam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...