Ann: Adriatic Metals Exceptional Pre Feasibility Study Vares, page-60

The base metals prices used in the PFS seem in line with some of the forecasts that I have seen. In fact, the Zn and Cu prices are a little lower but the lead higher. What really stood out in the PFS were the prices used for Au and Ag. I don't suppose that anyone believes that the same forecasts used in the scoping study are still applicable (US$1440/oz Au and US$17/oz Ag) but ADT has really pushed it by putting out $1900/oz and $24/oz even though the likes of Goldman Sachs is forecasting $2300 and $30. For a life of mine price, I suspect most would have been happy with prices in the order of $1600/oz and $19/oz. Taking these prices and noting that Au and Ag constitute around 45% of the revenue (can't recall where I read that) and that the lead price was also a bit high, it looks to me like a revenue discount of in the order of 10% may be more applicable which, according to the sensitivity tables in the PFS, gives an NPV8 of US$845m (or A$1,183m). Taking a 0.4 multiple for the stage of development, that would give a value of A$473m before accounting for cash and the value of Tethyan. So, it looks to me like the price should be in the mid A$2.0 range.