Ann: June 2020 Production Update, page-14

Hi pbawley,

The VA has already set a recap price of 2-5c per share. I suppose we could work backwards to value Gascoyne. Perhaps:

• Value of Dalgaranga and Glenburgh = $200m
• Debt and Miscellaneous = $128m (At end of Mar20 quarter, Banks=$80.0m, NRW=$32.7m, Trade=$6m, Misc say $9.3m)
• Net equity = $72m (ignore $0.5m of cash in bank at end of Mar20 quarter)
• Existing shares ~1,000m
• Equates to 7.2c/share
• CR at 30% discount or ~5c (the top of the VA 2-5c range).

The CR at 5c/ share appears to value Gascoyne (Dalgaranga and Glenburgh) at around $200m. I suspect it is worth more,

The Jun20 quarter 5C is imminent. Of interest is the cash in the bank at the end of Jun20 which we have previously estimated at around $15.0-17.5m (assuming no loan repayments and no material capex).

I think the key points from the 'Notice of EGM and Explanatory Statement' are:

• p9 "Additionally, it is important to note that it is anticipated that future adjustments to cutback mining rates are likely to be made in the normal course of optimising life of mine planning". I read this as a need for ongoing capex (such as the recent $10m accelerated cutback) but we do not know the size and/or timing of this capex. We do know there is currently a 400m GMZ section open to mining.
• p11 "Effectuation of the DOCA is subject to ... execution of a hedging facility ..." Around A$2600/oz?
• p20 "In addition, GNT and NRW are in the process of agreeing a variation to the NRW Mining Contract to take effect on completion of the DOCA." and "Further details of the terms of the NRW Mining Contract will also be set out in the Prospectus."