1.A colleague developed an estimated Net Asset Value (NAV) for your company, by adding up the estimated Net Present Value (NPV) of your company's mines and projects, and adding and subtracting items that either add to or detract from the value of the overall company (including investments and liabilities)

Your colleague says "I have three recent analysts reports here, and they present estimates of Enterprise Value (EV) that are very close together. The average EV of the reports is 25% higher than my estimated NAV. I think that means our company's shares are trading at a 25% premium

(a)Is your colleague correct in comparing NAV to EV - yes or no? Brieflyexplain your answer

(b)Name two sustainability related factors, one at a corporate level and one at a mine / project level, that could contribute to explaining why market value could be higher than fundamental value.