Ann: Strong BFS Update Delivers 59% Increase in NPV, page-22

Hi Agentari, It is always reassuring when you view a list like:

In valuing the project, many important factors affecting the potential development of the project may need to be considered.

These include:

• Has the company gotten all the social, environmental and government approvals, permits and agreements in place?
• Has the company got funding or access to capital to fund the development and working capital needs of the project?
• Are you relying on new or novel, experimental, or untested mining approaches or processing technology, which may increase the technical risks associated with your project?
• Different commodities attract different risks, does your commodity need to fit into a specific product specification for it to be marketable?
• Is the market for the project commodity subject to volatility (e.g. iron ore) or are you relying on new markets such as with battery commodities like lithium or cobalt?
• Gaining approvals to mine can also mean proving that you have a “social licence” to operate, especially if your project is potentially contentious, i.e. in an environmentally sensitive area or have an impact in areas of significant heritage value.
• The ability to attract funding for the capital expenditure and initial working capital requirements of a mining project is also crucial. Projects with a funding solution in place are inherently worth more than ones without.
• Access to transport infrastructure is critical for getting bulk commodities to market and hence comes with inherent risk.

And all can be answered with a positive answer in regards to the project as can be done with Mt Carbine. I also think a MC valuation based on 60% of NPV is very conservative. But as they say the Market doesn't lie and given the current MC is only 37% of the NPV attributable to EQR ($172.5m) It would be a safe bet to say I am wrong.

The rest of the article showing other projects at IRRs of 15% and 19.1% and talking about sovereign risk also make EQRs 397% IRR look OUTSTANDING. Sovereign Risk must be one of the lowest on the ASX given that the government is about to give EQR 6million to assist in the Mt Carbine build.

I look forward to in 12 months being able to value EQR on a PE ratio.