Ann: Exceptional new thick, high-grade intercepts, page-188

In the life cycle of going from an explorer to a developer to a producer there are some key pieces of information that move the SP materially higher of lower. In regards to SPR we can skip the exploration stage and focus on the developer stage. SPR has a decent resource at a good grade with a strong possibility of a higher grade at Dalgaranda exceeding 3g/t with a reasonably high proportion of indicated resources. We may see the next MRE update provide 0.9m Oz to 1.1m Oz indicated at NN, total MRE of 1.4m Oz to 1.5m Oz at NN+Pepper (inferred + indicated) and maybe overall Dalgaranda MRE of 2.2m Oz to 2.5m OZ (inferred to indicated) at a grade circa 3 g/t (up from 2.5g/t currently) and all these will probably grow further over the next year.

However we are missing two key metrics and they are key to a higher or lower SP for SPR:

A. a reserve - if the reserve at NN approached 1m Oz (eg 800k Oz or higher) at a grade over 5.5g/t that may be a catalyst for a higher SP remembering BGL has 1.34m Oz) and that reserve should increase over time - we should find out in the next 3 months
B. the AISC - in the FS study if it gets to levels like BGL, EMR and CMM (ie around $1,250) SPR may see a higher SP. Not sure when that will be announced but probably not 2024. I note one broker was looing at about $1k for just NN.

Currently we are all guessing these 2 metrics will be. Once we see these 2 metrics released we and the market will gain more certainty how to value SPR. If we see a reserve approaching 1m Oz that should provide greater confidence that te AISC will be on the lower side.

Personally, I find your AISC of $1,500 may end up being too high.