Ann: Mt. Carbine BFS Webinar Presentation, page-4

The presentation today was a good one and reconfirms the path we've been on. Well done to the team who put it together.

A couple of observations from Kevin's talk.

- apparently day traders were playing on Monday. Looks like they lost and ran for the exit, pushing the price down. Since then we have recovered most of the drop.
- more open pit could be added 1-2 years.
- scoping study will add enormous value as it will add the underground and Iron Duke from more drilling.
- the 15% of resource in the BFS. Kevin thinks this number will end up being smaller as they find more tungsten.
- On track in December for record month production.
- Power upgrade goes live next week, which allows ore sorter to run 24/7, which provides more product for the processing plant. (they are still mixing it with the tailings).

To expand on Kevin's comment about enormous value being added by the scoping study. I suggest people have a look at cashflow on table 34.
In year 3 and 4, they are processing the open pit ore of 400k to 500k tonnes per year. They expect to produce 5k to 8k tonnes of tungsten per year (5% to 8% of world production) and large cashflows of $70m to $130m per year. Then in year 5, the BFS returns to the stock pile producing 1200 tonnes per year.

The model gives a NPV of $131m. However, it's only really based on 2-3 years of full scale production.

In year 5, it would be easy to assume that they can continue to process 500k tonnes of ore from (open pit expansion, underground, other deposits not drilled or from the tungsten cluster). In short they will get 500k tonnes. This should give them between 3k and 8k tonnes of tungsten. The capex isn't going to change much as the processing plant, crushers and ore sorters have already been covered in the BFS.

If you extrapolate that out for each year from year 5 to year 12 of 500k tonnes of ore. I think you would get a much larger NPV and a IRR that is ridiculous.

Any one good at running NPV calculations?

The dots are starting to join very nicely.