AbraPlata Resources: FCM Advanced Resource Stock Valuation

AbraPlata Valuation

Flagship Property: Diablillos = 100% Ownership … 1 Point

Resource Base = 137,000,000 oz AgEq … 1 Point

F/D Share Structure = 101,000,000 … 1 Point

Recent Price = US $0.10

F/D Market Cap = US $10,100,000

After-tax IRR = 20.3% … 1 Point

NPV/CapEx = 68% … 1 Point

F/D Market Cap per Resource Ounce = $0.07 … 1 Point

In other words, each ounce in the ground is valued at $0.07 by market cap. This translates to massive revaluation potential.

Share Price Valuation by Resources in the Ground

Each share is worth 1.36 AgEq ounces in the ground. In other words, each share is worth $22.37 @ US $16.45/oz Ag. Pause and let that sink in a minute…

Cost Structure = 47% … 1 Point

Resource Valuation as a Percentage of Market Cap

Value of Resources @ $16.45/oz Ag = US $2,253,650,000

= .4%

In other words, the market cap is valued at .4% of the value of the AgEq resources in the ground. This is laughably low. There is room for substantial market cap growth.

Near-Term Cash Flow = US $85,260,000 … Unrated

Near-Term Cash Flow Multiple = 12x … 1 Point

Future Cash Flow @ $50/oz Ag = US $414,050,000 … Unrated

Debt Coverage = 0 Debt … 1 Point

Projected Future Market Cap = US $685,000,000 … Unrated

Projected Future Market Cap Growth Percentage = 6,682% … 1 Point

Location: Salta Province, Argentina … 1 Point

Conclusion

With FCM Advanced Resource Stock Valuation results like these, AbraPlata Resources doesn’t require any editorialization. We are aggressive buyers between US $0.10 and $0.05. Diablillos will be a really big mine. It’s going to need a partner.

Score

11/11


Key

Flagship Project: 100% Ownership … 1 Point

After-tax IRR = > 20% … 1 Point

NPV/CapEx = > 1 … 1 Point

EV/Resources = < 1 … 1 Point

Cost Structure = < 50% … 1 Point

Resource Base = > 80 Mlbs. U308 … 1 Point

Future Cash Flow = Unrated

Future Cash Flow Multiple = > 5x … 1 Point

Share Structure = < 200 M … 1 Point

Debt Coverage = > 50% (or No Debt) … 1 Point

Projected Future Market Cap = Unrated

Projected Future Market Cap Growth Percentage = > 500% … 1 Point

Location: Friendly = 1 Point

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