Ann: TVN Pre-Feasibility Study for Speewah Fluorite Project, page-36

simplified of course, but reasonable assessment by AI

To estimate the valuation of a listed junior mining company that has just completed a pre-feasibility study (PFS) for its project, the approach involves using the Net Present Value (NPV) as a starting point and then applying typical valuation multiples used in the mining industry.

Step 1: Identify key metrics

From the PFS results, we'll focus on:

• NPV (8.0%, post-tax): A$354.7 million
• IRR (post-tax): 33.2%
• Life of Mine: 10.6 years
• Payback period (post-tax): 2.8 years

Step 2: Assess the project quality

The project appears to have strong fundamentals:

• High IRR (33.2%) indicates good profitability
• Relatively short payback period (2.8 years) suggests quick capital recovery
• Reasonable mine life (10.6 years) provides a good production timeframe

Step 3: Consider the project stage

This is a PFS-stage project. Typically, projects at this stage are valued at a discount to their NPV due to remaining risks and development work required.

Step 4: Apply valuation multiple

For PFS-stage projects, valuations typically range from 0.3x to 0.5x of the post-tax NPV. Given the strong IRR and quick payback period, we might lean towards the higher end of this range.

Let's use a multiple of 0.4x to 0.5x NPV.

Calculation:Low end: 0.4 x A$354.7 million = A$141.88 millionHigh end: 0.5 x A$354.7 million = A$177.35 million

Step 5: Consider additional factors

• Market sentiment for fluorite/fluorspar projects
• Management team quality and track record
• Geopolitical risks of the project location
• Potential for resource expansion

These factors could adjust the valuation up or down, but without more information, we'll stick to our calculated range.

Step 6: Final valuation estimate

Estimated market capitalization range: A$141.88 million to A$177.35 million

This range represents a reasonable estimate for the company's market capitalization based on the PFS results. However, it's important to note that actual market valuations can vary significantly based on market conditions, investor sentiment, and company-specific factors.