Ann: Company Presentation - January 2018, page-53

Hi skiptotheend, not sure from your question what you understand about DCF valuations.

Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analyses use future free cash flow projections and discounts them, using a required annual rate, to arrive at present value estimates.

So I set the cost per tonne at $200 and the price per tonne at $550, a margin of $350, and put it in my DCF spreadsheet and came up with DCF value of $5.35. My DCF spreadsheet is complicated and allows for a variety of inputs, but in particular the debt to equity ratio which I used 25/75 @20c, the company is saying 30/70 and I now believe is likely to be higher than 20c and more likely closer to 30c and possibly even higher. Anyway my $5.35 valuation was done with an equity raise at 20c. That's it in a nutshell. The DCF valuation values all future earnings in todays terms and once the company gets its ECA funding, the company should be valued at a reasonable proportion of the present value estimate, imo.

If I haven't explained the process clearly enough, please ask more questions.