valuation

Tulla Resources key asset is a 50% interest in the Central Norseman Gold Project, a historical gold
mine located near the town of Norseman in the Goldfields of Western Australia that has produced over 5.5Moz
of gold since operations began in 1935. The other 50% interest in the Project is held by ASX listed company
Pantoro Limited

The current Mineral Resource
is 35.0Mt @ 3.8 g/t for 4.24Moz1 (100% basis) with the majority of the Mineral Resource on granted mining leases

Seven year Phase One project life;
• Average production of 108Koz per year, peaking at 119Koz in year two of production;
• Extensive Mineral Resources of 35.0Mt @ 3.8 g/t Au for 4.24Moz and with an Ore Reserve of 602Koz;
• Mineral Resource to Ore Reserve conversion cost to date of $22.53/oz;
• AISC of $1,281/oz placing the Project in the bottom half of the cost curve for Australian / New Zealand gold mines;
• Less than one-third of the in-situ global Mineral Resource delineated in Phase One;
• Unhedged operations with full leverage to gold price through gold production at the Project;
• Strong working relationship with partner Pantoro, demonstrated by Tulla Resources’ approximate 7.1% shareholding in Pantoro. On Completion of the Offer, Tulla Resources will be Pantoro’s second largest shareholder; and
• 5–7 drill rigs on site with the strategy to double the Ore Reserves (from ~600Koz to ~1.2Moz) (100% basis) through 100,000 metres of additional drilling.

Billionaire Robert Friedland is a top 20 shareholder owning 2.2m shares

Imo the project metrics will improve considerably leading up to the start of production early next year.

PNR the 50% partner of the project has a current m/c of $308m with cash of $64.9m giving an ev of $243m, Tulla is valued at $243m at the offer price of 90c with an EV of $191m, Tulla also own 7.1% of PNR which is worth $21.5m.

So for those that dont know how to value the stock just consider that it is actually much cheaper than PNR at the 90c offer price.

DYOR