Ann: A$11m Capital Raising to Accelerate Mining at Hill End, page-7

I thought I would share my thoughts on this.

The following equity is going to be raised:

• $7.5 M conditional placement;
• $3.5 M convertible loan; and
• $1.0 M Share Purchase Plan (SSP).

The terms of the capital raise are the same for each instrument, $0.21 per share and one (1) free attaching option per three (3) ordinary shares at $0.25 strike price (VTXO). The result:

	Type	Equity Raised ($ M)	Ordinary Shares (VTX - M)	Attaching Options (VTXOA - M)
1	Conditional Placement	7.5	35.7	11.9
2	Convertible Loan	3.5	16.7	5.56
3	Share Purchase Plan	1.0	4.76	1.59
4	Total	12	57.1	19.0

Total SOI is then ~308 M current plus 76 M future for ~384 M total (from my memory); or

Total SOI is then ~358 M current plus 76 M future for ~434 M total (based on Gold Nerds)

This represents a ~20 to 30 % dilution. Not a big deal IMO to de-risk the project moving forward.

My back of the envelope valuation is as follows:

• $ 18 M in cashflow from existing options (per Gold Nerds);
• $ 4.8 M in cashflow from additional options (19 M at $0.25 strike price);
• $ 4.5 M left over from capital raise (assuming 50 % contingency kept);
• Indicated resource: 70,000 ounces produced at ~$2000 AISC per ounce and sold at $4500 per ounce (10 % markdown on spot price) for $175 M; and
• Inferred resource: 155,000 ounces total for another ~77,500 ounces produced (assuming at-least 50 % of the inferred is converted to ore reserve) for another $190 M in cashflow (see profit per ounce in previous point).

Total cashflow in the pipeline is $393 M. Assuming this is realized over the next 3-years at a 10 % discount rate, NPV10 is $325 M - excluding resource exploration upside at Reward, historic tailings being processed and the known resources at Red Hill and Hargreaves.

This gives a conservative valuation per share of about $0.75 - plenty of upside if you ask me.

Note: Please do your own due diligence and check my numbers.