Ann: Hartleys Updates Research Report on Danakali-DNK.AX, page-2

VALUATION We assume startup capex of ~A$420m. Given the proposed financing structure, we assume 70% debt funding and 30% equity funding. We assume that 100% of cash flows are paid to the third party debt and then loan by DNK to the Government (~A$60m) until the expansion in 2023, after which we assume DNK receives 50% of free cash flow (~$100m pa DNK share). Given the very long mine life, the NPV is strong despite it being several years before DNK receives free cash flow. We assume DNK issues ~340m new shares.