Coiled up tighter than a spring, page-9

Dear Freo

Just to help out here I did these calculations that show an updated Net Present Value (NPV) of circa $525m (from $243m). I have not calculated the IRR but it will be outstanding on these numbers.

In terms of market value of PMY I can see a MASSIVE GAP between the current market cap of $11.4m and the risk weighted value of PMY which I believe is conservatively circa $178m.



This does not factor in any change in the price of LEAD (US 92c lb) SILVER (US$15.40) and Exchange Rates (70c) used in the March 2019 PFS).

But now we have to consider the following potential upsides each of which could be very large -

- increase in the price of Ag above the PFS price used of $US 15.4
- increase in the price of Pb above the PFS price used of US 92c lb. We are not at that level yet because of the COVID 19 scare, but this will pass quickly and the price should reflect the current and forecast supply deficits
- the AUD being now circa 64c compared to 70c used in the PFS
- the added potential of the Eight Mile exploration tenement.

Here is a graph of the above. I will add in some tables that show the impact on cents per share of increases in the Ag and Pb prices just to give you an idea of the scale of effect of favourable movements.


Happy days.

V