Crunching the numbers, page-69

Hi all,

I've just gone through the Arrowhead note and its important to note that the "fair share value bracket" target of 1.4 cents - 2.2 cents doesn't include any contribution from the acquisition nor basically any exploration upside from any of the assets, Tumi or the Cu side. They've factored in the savings in rental costs that they no longer will have to pay post the acquisition but there is no upside attributed at all for any Cu production which the company has quoted as being $2.5 million in EBITDA plus a share of the concentrate sales.

This was the disclaimer at the end of the report :

"Information on the Minera Gold valuation
Minera Gold Valuation Methodology: The Arrowhead fair valuation for Minera Gold is based on the discounted cash flow (DCF) method. Valuation is based on the Torrecillas, Ady, Rebeca and Tessie veins in the Torrecillas project in Peru.
Time Horizon: The Arrowhead fair valuation for Minera Gold is based on a DCF method. The time period chosen for the valuation is 105 months (2014-2022). While revenue is expected to ramp up significantly over 2014-2015, the later years are heavily discounted and have a marginal effect on valuation, which are included primarily to present a full project cycle situation.
Terminal Value: Terminal Value is estimated to depend on a terminal growth rate of 0%, representing the maturity, technology change and prospective competitiveness in the business.
Prudential Nature of Valuation: This Arrowhead Fair Value Bracket estimate is a relatively prudential estimate, as it discounts the eventuality of the company acquiring and producing from any projects other than Torrecillas and Tumi before 2022. Also, we have not considered the additional revenue from third party toll treatment contracts and copper processing facilities."

DYOR