Charts & TA, page-249

This is what a tidied up report should look like, keep in mind that processing recovery should go up to 94% and AISC will drop. I have seen previous reports showing this. Also Gold is predicted to be well above A$6000oz.

I have used the latest 10 documents on the ASX along with previous DFS from 2014.

I’ve run models where it is likely that the resource size will increase to 4.5moz, this was using the existing maps and planned drill holes. So even this i feel like will grow.

Also the cut off points will more then likely drop to 0.3-0.4 once DPF is complete.

Assumptions for All Scenarios:

• AISC: A$2000/oz
• Processing Recovery: ~88%
• Future Pit Expansion: Larger pit shells, extending current deposits (Phoenix, Bacchus, Kraken) with successful deep drilling campaigns currently ongoing (80,000m) .
• Resource Potential: Expanded Mineral Resource Estimate (MRE) based on positive current drilling results.

Scenario 1: Base Scenario (A$5000/oz Gold Price)

Projected Future Resource and Pit:

• Resource Size: 3.0Moz (Conservative growth)
• Mineable Inventory (approx.): 1.5Moz

Financial Metrics:

• Revenue: 1.5Moz × A$5000/oz = A$7.5 billion
• Operating Cost: 1.5Moz × A$2000/oz = A$3 billion
• Gross Profit: A$4.5 billion

Projected Market Capitalization:

• Applying a conservative valuation multiplier of approximately 0.35× Gross Profit for advanced-stage gold developers:
  
  • Projected Market Cap: A$4.5B × 0.35 ≈ A$1.575 billion
• 
  
• Market Cap Increase from Current: A$1.575B - A$290M = A$1.285 billion
• Percentage Increase from Current Market Cap: (A$1.285B / A$290M) × 100% = 443%

Scenario 2: Optimistic Scenario (A$5500/oz Gold Price)

Projected Future Resource and Pit:

• Resource Size: 3.25Moz (Moderate growth)
• Mineable Inventory (approx.): 1.75Moz

Financial Metrics:

• Revenue: 1.75Moz × A$5500/oz = A$9.625 billion
• Operating Cost: 1.75Moz × A$2000/oz = A$3.5 billion
• Gross Profit: A$6.125 billion

Projected Market Capitalization:

• Using similar valuation multiple (0.35× Gross Profit):
  
  • Projected Market Cap: A$6.125B × 0.35 ≈ A$2.144 billion
• 
  
• Market Cap Increase from Current: A$2.144B - A$290M = A$1.854 billion
• Percentage Increase from Current Market Cap: (A$1.854B / A$290M) × 100% = 639%

Scenario 3: Bull Scenario (A$6000/oz Gold Price)

Projected Future Resource and Pit:

• Resource Size: 3.5Moz (Aggressive growth scenario)
• Mineable Inventory (approx.): 2.0Moz

Financial Metrics:

• Revenue: 2.0Moz × A$6000/oz = A$12 billion
• Operating Cost: 2.0Moz × A$2000/oz = A$4 billion
• Gross Profit: A$8 billion

Projected Market Capitalization:

• Using similar valuation multiple (0.35× Gross Profit):
  
  • Projected Market Cap: A$8B × 0.35 ≈ A$2.8 billion
• 
  
• Market Cap Increase from Current: A$2.8B - A$290M = A$2.51 billion
• Percentage Increase from Current Market Cap: (A$2.51B / A$290M) × 100% = 865%

Key Risks and Opportunities

• Water Supply: Securing adequate water remains a key risk for a 5.0Mtpa operation .
• Resource Expansion: Significant potential upside exists given the large-scale drilling campaign and historical high-grade intercepts.
• Metallurgy and Recovery Improvement: Potential upside to improve recovery rates beyond the current 87-88%.

Conclusion

• Resource Potential: Current drilling and historical data strongly indicate Bullabulling’s resource could realistically expand to between 3.0Moz and 3.5Moz, supporting deeper, larger pits.
• Financial Viability: Under all three gold price scenarios provided (A$5000-A$6000), MI6 shows substantial profitability given an assumed AISC of A$2000/oz.
• Development Pathway: The project’s large-scale, open-pit amenability combined with historical precedence and current positive drilling outcomes suggest a viable and profitable future operation.

This analysis provides a robust framework for understanding potential future scenarios for Minerals 260 (MI6), strongly supported by recent studies and drilling updates.