Mining overview: Unlocking the price to NPV discount

In past publications, Edison has derived differentiated values for measured, indicated and inferredgold resource ounces listed in London, Canada and Australia. This report updates these numbersand extends the methodology to other metals and minerals (provided overleaf). For the first time,Edison has also performed a price to project NPV analysis over a sample of 63 companies. Theanalysis covers gold, silver, uranium, copper and zinc juniors, and three types of study, namelypreliminary economic assessments (PEAs), pre-feasibility studies (PFSs) and bankable feasibilitystudies (BFSs). The intention of the analysis was to investigate the relationship between fourproject variables (grade, IRR, size and jurisdiction) and the valuation of their host company. Thisanalysis also served as a means to benchmark our market derived discount rates for companies atdifferent stages of development. Finally, we have updated our gold price forecasts within thecontext of the commencement of the Federal Reserve’s reduction of its balance sheet andincreasing expectations of a return to positive real interest rates in the US.

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