Ann: Large gold target at El Palmar, work starts at Verde Chico, page-39

There are two valuation drivers for STM:

1. The Limon + Brama deposit. In-ground Oz valuations are difficult to pin to an exact number and you see quite a range. For example, this year we saw RMS buy BRB and their 1.7mOz resource for an implied $36/Oz, but then just months later they bought MGV with 927kOz for an implied $216/Oz. At 4mOz, Limon would be getting interesting, but if they can get it closer to their targeted 10mOz, then it will be on multiple radars and is heading into Tier 1 territory. My guess is that at 4mOz, then $50 is possible as a in-ground valuation (depends on the resource size of Limon and in near surface reserves) and at higher resource figures, $50 is definitely in the ballpark. The size / scale of Limon is the key as its cash flow drives capacity to develop the at depth resource.

2. El Palmar. In 2016, BHP made a play to buy 10% of nearby Cascabel for US$30m with an option to fund a further US$275m of development to earn up to 70%. This was off the back of some good drill results by SolGold (notably Hole 17 with 1.54% copper over a 150m strike). In the end, SolGold rebuffed BHP and went and did a further capital raise to keep going and is still working towards developing this asset. Of interest SolGold's share price whilst all this was happening in 2016 went from 1.5 pence to a high of about 46 pence! STM has made mention that the big guys are sniffing around El Palmar, interested in its nearology to Cascabel (both in terms of near location and similar geology). So, a couple of decent holes in 2024 and this level of big boy interest may throw up an interesting implied valuation for El Palmar (note copper price in 2016 was circa $2.20/lb vs $3.80/lb today).