Ann: Baker Young Updated Research Report, page-3

Some of the highlights: we value MUS at $0.16 per share

The ruby market is experiencing a decade of strong growth – The global polished ruby market is estimated to be ~US$2 billion per annum (2014) with the total coloured gemstone market (ruby, sapphire & emerald) estimated to be ~US$5.9 per annum (2015). Most importantly, the coloured gemstone market grew by 13% in 2015,

First Parcel of Rubies sent to the US containing Special Stones – The parcel of rubies and corundum that has been sent to the US totalled 6,221cts, which included seven special stones, weighing a total of ~95cts, including two rare 24ct high quality rubies. Large special stones can attract significant prices in excess of US$100,000 per carat once cut and polished. Recent sales of large special stones between 8-30cts (cut & polished) have sold for between $5 - $30 million in the retail market. The special stones component represents very large potential upside to our valuation model on MUS.


Fast progression from gemstone explorer to producer – Mustang have successfully transitioned to production within 12 months of acquiring the highly prospective Montepuez ruby project. The ability to go straight into large scale bulk sampling will allow early cashflows to be generated whereas most other mining jurisdictions require mining approvals which often take years to receive.