Ann: Mulga Tank Mineral Resource Over 5Mt to Contained Nickel, page-85

Now that Western Mines Group (WMG) has released a JORC-compliant Mineral Resource Estimate (MRE) for Mulga Tank — reportedly indicating over 5 million tonnes of contained nickel — we can apply more concrete valuation methods rather than relying on speculative early-stage comparisons.

Methods to Value the Mine

Here are the common methods used in valuing a mineral asset with a JORC resource:

1. In-Situ Valuation ("Rock Value")

This method uses the amount of metal in the ground multiplied by a value per pound or tonne, discounted for risk and development stage.

⚙️ Assumptions:

• 5 million tonnes of contained nickel

• Nickel price: ~US$18,000 per tonne (April 2025 average)

• In-situ value (before discount):
  $18,000 × 5M tonnes = US$90B gross metal value

• Apply a discount factor of 0.5% to 1.5% (typical for undeveloped exploration-stage projects, depending on confidence and jurisdiction)

→ Implied project value = US$450M to US$1.35B
→ A$680M to A$2.05B

2. EV/Resource Unit Benchmarking

Look at recent transactions for comparable nickel projects in WA or globally.

Examples:

• Sama Resources’ Yepleu Project (Ivory Coast) with similar-scale sulphide nickel: Acquired at ~US$0.02–$0.04/lb Ni in ground.

• Mincor Resources (Kambalda): Valued at ~US$0.10/lb Ni at time of BHP acquisition due to more advanced stage.

For Mulga Tank:

5M tonnes = 11 billion lbs Ni

• Low range (early-stage): $0.02/lb × 11B = US$220M (A$330M)

• Mid range: $0.05/lb × 11B = US$550M (A$825M)

• High (if advanced + DFS): $0.10/lb = US$1.1B (A$1.65B)

3. NPV Method (Discounted Cash Flow) – ❗Needs Feasibility Study

If WMG releases a Scoping or Pre-Feasibility Study with CAPEX, OPEX, production targets, etc., then a full discounted cash flow (DCF) can be done. But for now, this method is premature.

Final Estimated Valuation Range

Stage	Valuation (AUD)	Notes
Early Development (today)	A$300M–A$600M	Based on in-situ/resource multiple; no scoping study yet
After Scoping/Pre-Feasibility	A$800M–A$1.2B	If viable mining scenario proven
Post-Final Investment Decision	A$1.5B+	If mine construction is imminent

Summary

Today, with the newly announced resource but no feasibility study yet, a realistic valuation of the Mulga Tank project (not just WMG’s market cap) would be in the ballpark of A$300M to A$600M. This could double or triple with de-risking steps like metallurgical results, a scoping study, and permitting progress.