Noble Capital Markets Jan 25,2021 Valuation Summary
Our price target is US$0.60 per share, or C$0.80. We value the company on an enterprise value/resources basis. Assuming the company is able to grow its indicated and inferred resources by 2.5x to 2,903,500 ounces based on the current drilling program that is fully funded, we estimate an enterprise value of C$159.7 million based on C$55 per ounce. Ascribing a value of C$2.5 million to projects outside of the LK Project, no debt, and forward estimated cash of ~C$2.1 million of cash, we estimate an equity value of C$164.3 million, or ~C$0.80 per share, or ~US$0.60 based on 202.3 million fully diluted shares outstanding, of which the issuance of options and warrants fund the drilling program without having to issue debt.