Kathleen Valley Project Discussion, page-71

Pls 229mt/2 = 115mt
Kdr 190mt/2 = 95 mt = $776m
Therefore: if LTR has half of PLS at KDR offer price
115mt = 115/95 x $776m= $939m

*this back of envelope calc is simplistic and very loose as grades, recovery, attractiveness to offtakes etc are all assumed equal. Anyone can therefore do haircuts of 30% or 40% but still very close to $600m.

Anyone can do a much detailed calc with dozens of assumptions but at the end of the day the only price that matters is the actual offer if and when it comes to the table.

The problem with the market is shown by kdr itself. The kdr sp was $1.20’ish and the Wes offer was $1.90. Another example is PO3, the SP was 50 cents but an investor bought a major stake at $2.40 or almost 5x the SP. The $939m or discounted $600m may look ridiculous (as Gxy only has $600m and EV of $200m which is a different story altogether) but it is based on undeniable comparison or benchmark in the current M&A. So the reality of all these is that the SP is not necessarily reflective of the intrinsic value. I believe we should be much higher now in LTR but it is what it is. What we knows is once KV is proven, it is non-committed, it is huge and high grade and has to be very attractive project to a major.

Cheers