Justifcation for target priceSource: TD Newcrest estimates.
We use a probability-weighted takeover valuation methodology, based on our corporate NAV5%, which
attempts to reflect the company’s significant potential as an acquisition target for senior gold producers. We
assign a 40% probability to the company ultimately being acquired for $8.00 per share, a 50% probability of an
acquisition taking place at $9.00 per share and a 10% probability of a take-over at $10.00 per share. We note
that a bid of $10.00 per share (equivalent to 2.0x our cash-adjusted NAV5%) would be dilutive to the senior
gold producers in our coverage universe that currently trade between 1.4x-1.7x
NAV5%.