fox davies, page-3

jesus. this is like a 10 course meal of wow, wow and WOW.


Brskovo:
"At the time of Fox-Davies’ recent site visit we saw visible massive sulphides in the core including galena, chalcopyrite and sphalerite"


What is the company worth?
We have used a sum of parts approach for our valuation. For Monty we have constructed a preliminary DCF model using rule of
thumb parameters to derive an NPV. Assuming a production rate of 600 000 tonnes of ore per annum, we estimate a project value
of approximately US$29 M. For Bogdan, we have taken the value of the project as equal to the amount of money spent on the
project to date, i.e. US$1.2 million plus an exploration commitment of US$300 000 for an 85% share. This would value of the project
at US$1.76 M which we believe deserves a premium of 100%, therefore valuing the project at US$3.5 M. For the Peelwood project
we derived a ‘fair value’ of the in-situ resource which we estimate at US$4.5 M. Adding cash of US$5 M gives us a valuation for the
company of US$42 M or US$0.22 in anticipation of the forthcoming 10:1 share consolidation. This equates to A$0.22 (GBP0.14) per
share.