RE: Question18 Jul 2019 15:20
Hope this helps:
Unrisked share price I considered to be a 'geological success' case i.e. the resource is there and it can be exploited and here is the associated share price
Risked share price is multiplied by a risk factor applied to each prospect and either simply summed arithmetically or calculated using Monte Carlo sampling.
Think of it like a simple oil prospect pre drill, it has a NPV of +100 million dollars assuming the resource is there. The geological risk factor is 15% so the risked prospect is valued at +15million dollars
remember everyone's calculation of risk is different so each brokers risked SP would be different