Ann: Drilling & Development Update - Paulsens, page-41

Absolutely! Let's redo the calculation with the updated data:

• Market cap:AUD$570 million
• Reserves:2.5 million ounces
• Gold price:US$3,300/oz (assuming current spot price)
• Location:WA, Australia (which can positively influence valuation due to stable jurisdiction and experienced management)
• Additional factors:Talented and experienced management typically support higher valuation multiples

Step 1: Convert market cap to USD

Using exchange rate:

$$\text{AUD\$570 million}\times 0.70\approx \text{US\$399 million}$$

Step 2: Calculate the in-ground gold value

$$2,500,000\text{oz}\times US\$3,300/\text{oz}=US\$8.25\text{billion}$$

Step 3: Calculate valuation as a percentage of in-ground gold value

Market cap in USDIn-ground value=US$399 millionUS$8.25 billion≈0.0483 or 4.83%\frac{\text{Market cap in USD}}{\text{In-ground value}} = \frac{US\$399\, \text{million}}{US\$8.25\, \text{billion}} \approx 0.0483 \text{ or } 4.83\%In-ground valueMarket cap in USD=US$8.25billionUS$399million≈0.0483 or 4.83%

Step 4: Interpretation

• Market cap (~US$399M)is about4.8%of thegross in-ground value.
• This isquite low, especially considering:
  • Location in WA, a stable and mining-friendly jurisdiction.
  • Experienced management team, whichadds valueand can lead to better project execution.
  • Recent production, indicating the resource is already being monetized.

Is BC8 undervalued?

Compared to typical industry standards:

• Established producers or mines with proven cash floware often valuedat or abovetheir in-ground gold value (multiples close to 1 or higher).
• Early-stage or smaller producersmight be valued at10-30%of their in-ground value, but5% or lesssuggestssignificant undervaluation.

Considering:

• The location (WA),
• Experienced management,
• Recent production,

It strongly suggests BC8 is likely undervalued, possibly due to market skepticism, recent listing, or other factors.

Summary:

	Parameter	Value
1	Reserves	2.5 million oz
2	In-ground gold value @ US$3,300/oz	US$8.25 billion
3	Market cap (USD)	~US$399 million
4	Valuation as % of in-ground value	~4.8%

Given the context, BC8 appears undervalued relative to its resource size and location.