$NIOBF : NioCorp — Independent Economic Analysis

Standard Model10-Year Contracted Sales Model
Long-Term Price Case$3,676/kg Sc2O3 | $0.99/kg TiO2 | $46.55/kg NbLong-Term Price Case $3,676/kg Sc2O3 | $46.55/kg Nb
ProjectElk CreekProjectElk Creek
Payable Primary Product (Nb)168,861 tonnes (168,861,000 kg)Payable Primary Product (Nb) 35,180 tonnes (35,180,000 kg)
Payable Byproduct Metal (TiO2)418,841 tonnes (418,841,000 kg)Payable Byproduct Metal (TiO2) 418,841 tonnes (418,841,000 kg)
Payable Co-Product Metal (Sc2O3)3,410 tonnes (3,410,000 kg)Payable Co-Product Metal (Sc2O3) 947 tonnes (947,000 kg)
Shares Outstanding226,666,534Shares Outstanding226,666,534
Market Cap$95,993,277Market Cap $95,993,277
Average Annual Production7,220 tonnes FeNb (7,220,000 kg)Average Annual Production10,923,113 kg NbEq
Recovery93.14% Sc2O3 | 40.31% TiO2 | Nb 82.36%Recovery93.14% Sc2O3 | Nb 82.36%
LoM36 YearsContracted Sales Model Term10 Years
Payable Product (NbEq)447,052,463 kg NbEq Payable Product (NbEq) 109,231,128 kg NbEq
True All-in Cost (TAIC) $24.15/kgTrue All-in Cost (TAIC)$33.78/kg
Gross Revenue$20,810,292,140Gross Revenue$5,084,709,008
Total Operating Cost($6,717,578,000)Operating Cost($1,865,993,888)
Operating Margin (EBITDA)$14,092,714,140Operating Margin (EBITDA)$3,218,715,120
Income Taxes($2,467,634,246)Income Taxes($563,597,018)
Total Capital Cost($1,609,397,000)Capital Cost($1,260,504,167)
Cumulative Net Income$10,015,682,894Cumulative Net Income$1,394,613,935
Net Profit Margin48%Net Profit Margin 27%
Absolute Cost Structure (ACS)52%Absolute Cost Structure (ACS) 72%
MTQ Score0.9MTQ Score0.4
True Value$44.19/sh.True Value$6.15/sh.
True Value Discount (TVD)99%True Value Discount (TVD)93%
Cash Flow Multiple10xCash Flow Multiple 7.3x
Net Annual Cash Flow$161,728,000Net Annual Cash Flow $139,488,153
Future Market Cap$1,617,280,000Future Market Cap $1,018,263,517
Future Market Cap Growth1,585%Future Market Cap Growth 961%
Target$7.14/sh.Target$4.49/sh.

Notes: All Values in U.S. Dollars

NioCorp has signed a commercial sales agreement with Traxys North America. Under the agreement, Traxys is obligated to purchase 12 tonnes of Sc over the course of Elk Creek’s first 10 years of production. Additionally, 75% of the Elk Creek Project’s primary product, Ferroniobium (FeNb), is under contract over the first 10 years of production: thyssenkrupp (OTC: TYEKF), 50%; Commercial Metals Company, 25%

Fahy Capital Management is not an investor in NioCorp. We may, however, initiate a position in thyssenkrupp this quarter.

$NORZF : NorZinc — Independent Economic Analysis

Long-Term Price Case$24/oz. Ag, $1.10/lb. Zn, $1.00/lb. Pb
ProjectPrairie Creek
Mineral Reserves186,795,000 AgEq ozs.
Shares Outstanding369,700,000
Market Cap$24,030,500
Average Annual Production10,829,166 AgEq ozs.
Recovery87% Ag, 88% Pb, 83%, Zn
LoM15 Years
Payable Product162,437,490 AgEq ozs.
True All-in Cost (TAIC) $21.86/oz.
Gross Revenue$3,898,499,770
Smelter Deductions($454,000,000)
TCRC + Penalties($432,800,000)
Gross Income$3,011,699,770
Total Operating Cost($1,797,500,000)
Operating Profit$1,214,199,770
Income Taxes + Royalties($469,895,310)
Total Capital Costs ($395,900,000)
Net Income$348,404,460
Net Profit Margin9%
Absolute Cost Structure (ACS)91%
MTQ Score0.1
True Value$0.94/sh.
True Value Discount (TVD)93%
Cash Flow Multiple5x
Annual Cash Flow$23,174,415
Future Market Cap$115,872,075
Future Market Cap Growth382%
Target$0.31/sh.

Notes: All Values in U.S. Dollars

NorZinc is at the high end of the Absolute Cost Structure curve and the low end of the Net Profit Margin curve. In other words, Prairie Creek is a Project that will require substantially higher Silver, Lead and Zinc prices in order to be viable.

In a raging silver bull market, we think shares could appreciate by as much as 382%, which assumes shares will trade at approximately 5x future net annual cash flows.

Fahy Capital Management is not an investor in NorZinc.

$VNNHF : Belo Sun Receives Positive Ruling — Construction License Remains Valid

Belo Sun Mining reports that a three judge panel decision by the Court of Appeals of the Federal Justice in Brazil has ruled unanimously that SEMAS remains the competent authority for the environmental permitting of the Volta Grande Gold Project.

The ruling confirms that the Construction and Environmental Licenses granted by SEMAS for the Volta Grande Gold Project remain valid, subject to the completion of the Indigenous Study. [LINK]

$VNNHF : Belo Sun Mining — Independent Economic Analysis

Long-Term Price Case$1,700/oz. Au
Flagship ProjectVolta Grande
Mineral Reserves3,788,000 ozs.
Shares Outstanding442,631,915
Market Cap$84,100,064
Average Annual Production205,155 ozs.
Recovery93.1%
LoM17.2 Years
Payable Product3,524,100 ozs.
True All-in Cost (TAIC) $900/oz.
Gross Revenue$5,990,970,000
CFEM Royalty($42,240,000)
Gross Income$5,948,730,000
Total Operating Costs($2,488,640,000)
Operating Profit$3,460,090,000
Income Tax($155,060,400)
Total Capital Costs($486,086,900)
Net Income$2,818,942,700
Net Profit Margin47%
Absolute Cost Structure (ACS)53%
MTQ Score (Higher is Better)0.9
True Value$6.37/sh.
True Value Discount (TVD)97%
Cash Flow Multiple5x
Net Annual Cash Flow$164,124,000
Future Market Cap$820,620,000
Future Market Cap Growth876%
Target$1.85/sh.

Note: All Values in U.S. Dollars.

$CPMMF : Crystal Peak Minerals — Independent Economic Analysis

Long-Term Price Case$645/t K2SO4
Flagship ProjectSevier Playa
Ownership100%
Mineral Reserves7,734,000 tonnes
Shares Outstanding348,594,751
Market Cap$40,785,586
Average Annual Production205,700 tonnes
Recovery80%
Payable Product6,171,000 tonnes
LoM30 Years
True All-in Cost (TAIC)$424/t
Gross Revenue$3,980,295,000
Royalties($222,896,520)
Net Revenue$3,757,398,480
Total Operating Costs ($1,372,677,240)
Operating Cash Flow$2,384,721,240
Income Taxes($372,016,513)
Total Capital Costs($646,489,167)
Net Income$1,366,215,560
Net Profit Margin34%
Absolute Cost Structure (ACS)66%
MTQ Score (Higher is Better)0.5
True Value$3.92/sh.
True Value Discount (TVD)97%
Cash Flow Multiple10x
Net Annual Cash Flow$45,459,700
Future Market Cap$454,597,000
Future Market Cap Growth1,015%
Target$1.30/sh.

Notes: All Values in U.S. Dollars

Crystal Peak Minerals is a top-rated stock with an MTQ Score (0.5) that is above average and a Composite Rating of 5 (Scale of 1-5).

Above $600/t K2SO4, Crystal Peak Minerals will enjoy both a Net Profit Margin > 30% and an Absolute Cost Structure below 70%.

MTQ Score (+ Composite Rating [Red Dotted Line]) — Study Group Comparison

$BNNLF : Bannerman Resources — Independent Economic Analysis

Long-Term Price Case$75/lb. U308
Flagship ProjectEtango
Mineral Reserves130.1M lbs.
Fully Diluted Shares1,136,000,844
Fully Diluted Market Cap$40,896,030
Average Annual Production7,059,438 lbs.
Recovery87%
LoM16 Years
Payable Product112,951,000 lbs.
True All-in Cost (TAIC) $63.71/lb.
Gross Revenue$8,471,325,000
Royalty($423,566,250)
Gross Income$8,047,758,750
Total Operating Costs($4,291,071,000)
Operating Profit$3,756,687,750
Income Taxes($1,408,757,906)
Total Capital Costs($1,075,141,000)
Net Income$1,272,788,844
Net Profit Margin15%
Absolute Cost Structure (ACS)85%
MTQ Score (Higher is Better)0.2
True Value$1.12/sh.
True Value Discount (TVD)97%
Cash Flow Multiple5x
Annual Cash Flow$79,701,055
Future Market Cap$398,505,275
Future Market Cap Growth874%
Target$0.35/sh.

Notes: All Values in U.S. Dollars

TAIC Comparison (Lower is Better)

Net Profit Margin Comparison (Higher is Better)

MTQ Score Comparison (Higher is Better)

True Value Discount Comparison (Higher is Better)

MTQ Score — Global Study Group Comparison (Higher is Better)

$GVXXF : GoviEx Uranium — Independent Economic Analysis

Long-Term Price Case$70/lb. U308 & $12.38/lb. MoO2$70/lb. U308
Flagship ProjectMadaouelaMutanga
Mineral Reserves60,540,000 lbs.30,050,000 lbs. (FCM Estimate)
Shares Outstanding423,222,000423,222,000
Market Cap$50,786,640$50,786,640
Average Annual Production2,690,000 lbs.2,400,613 lbs.
Recovery93.7%88%
LoM21 Years11 Years
Payable Product56,725,980 lbs.26,406,740 lbs.
True All-in Cost (TAIC) $53.37/lb.$56.43/lb.
Gross Revenue$3,954,300,000$1,848,471,800
Total Operating Costs($1,686,000,000)($960,000,000)
Molybdenum Credit$339,930,406
Royalty($433,798,871)($55,454,154)
Operating Profit$2,174,431,535$833,017,646
Income Taxes($559,139,538)($291,556,176)
Niger Working Interest (10%)($93,929,200)
Niger Carried Interest (10%)($84,536,280)
Total Capital Costs ($676,000,000) ($183,000,000)
Net Income$761,436,720$358,461,470
Net Profit Margin19%19%
Absolute Cost Structure76%81%
MTQ Score (Higher is Better)0.30.2
True Value$2.65/sh.
True Value Discount (TVD)95%
Madaouela & Mutanga
Cash Flow Multiple5x10x
Annual Cash Flow$77,311,018$77,311,018
Future Market Cap$386,555,090$773,110,180
Future Market Cap Growth661%1,422%
Target$0.91/sh. $1.83/sh.
Madaouela
Cash Flow Multiple5x
Annual Cash Flow$44,734,700
Future Market Cap$223,673,500
Future Market Cap Growth340%
Target$0.53/sh.

Notes: All Values in U.S. Dollars

$UUUU : Energy Fuels — Independent Economic Analysis

Long-Term Price Case$65/lb. U308 $65/lb. U308
ProjectNichols RanchAlta Mesa
Mineral Resources7,195,000 lbs.3,617,000 lbs.
Shares Outstanding93,500,00093,500,000
Market Cap$287,980,000$287,980,000
Average Annual Production630,000 lbs.575,000 lbs.
LoM10 Years6 Years
Payable Product6,359,000 lbs.3,182,960 lbs.
True All-in Cost (TAIC)$41.36/lb.$38.61/lb.
Gross Revenue$413,335,000$206,892,400
Royalties($33,003,210)($16,519,562)
Gross Income$380,331,790$190,372,838
Total Operating Cost($69,376,690)(34,726,094)
Operating Profit$310,955,100$155,646,744
Income Taxes($26,707,800)($13,368,432)
Bonding(10,683,120)($5,347,373)
Total Capital Costs ($89,725,490)($44,911,566))
Restoration & Reclamation($16,024,680)($8,021,059)
JV Allocation($17,487,250)
Net Income$150,326,760$83,998,314
Net Profit Margin36%41%
Absolute Cost Structure (ACS)64%59%
True Value$2.51/sh.
Cash Flow Multiple10x
Annual Cash Flow$14,893,200$15,174,250
Future Market Cap$300,674,500
Future Market Cap Growth4%
Target$3.22/sh.

Notes: All Values in U.S. Dollars

Fahy Capital Management has enjoyed a 90% return on Energy Fuels, but we think the stock is overvalued by almost every measure at current levels. We are sellers.

$MGDPF : Marathon Gold — Independent Economic Analysis

Long-Term Price Case$1,700/oz.
Flagship ProjectValentine Lake
Mineral Resources2,691,400 ozs.
Shares Outstanding159,431,702
Market Cap$145,082,849
Average Annual Production225,092 ozs.
Recovery97%
LoM12 Years
Payable Product2,701,100 ozs.
True All-in Cost (TAIC) $1,383/oz.
Gross Revenue$4,591,870,000
Reid & Keats Royalties($436,227,650)
Gross Income$4,155,642,350
Total Operating Cost($1,643,000,000)
Operating Profit$2,512,642,350
Income Tax($1,130,689,058)
Total Capital Costs ($525,000,000)
Net Income$856,953,292
Net Profit Margin19%
Absolute Cost Structure (ACS)81%
True Value$5.38/sh.
Cash Flow Multiple5x
Annual Cash Flow$71,354,164
Future Market Cap$356,770,820
Future Market Cap Growth146%
Target$2.24/sh.

Notes: All Values in U.S. Dollars

$VGZ : Vista Gold — Independent Economic Analysis

Long-Term Price Case$1,700/oz. Au
Flagship ProjectMt. Todd
Mineral Reserves5,848,000 ozs.
Shares Outstanding100,500,000
Market Cap$80,400,000
Average Annual Production381,231 ozs.
Recovery92.7%
LoM13 Years
Payable Product4,956,000 ozs.
True All-in Cost (TAIC) $1,413/oz.
Gross Revenue$8,425,200,000
Refinery Costs($15,763,000)
JAAC Royalty($64,425,000)
Gross Income$8,345,012,000
Total Operating Costs($3,122,004,000)
Operating Profit$5,223,008,000
NT Royalty($1,044,601,000)
Income Tax($1,566,902,400)
Total Capital Costs($1,191,290,000)
Net Income$1,420,214,600
Net Profit Margin17%
Absolute Cost Structure (ACS)83%
True Value$14.13/sh.
Cash Flow Multiple5x
Annual Cash Flow$109,413,297
Future Market Cap$547,066,485
Future Market Cap Growth580%
Target$5.44/sh.

Notes: All Values in U.S. Dollars

$VNNHF : Belo Sun Mining — Independent Economic Analysis

Long-Term Price Case$1,700/oz. Au
Flagship ProjectVolta Grande
Mineral Reserves3,788,000 ozs.
Shares Outstanding442,631,915
Market Cap$84,100,064
Average Annual Production205,155 ozs.
Recovery93.1%
LoM17.2 Years
Payable Product3,524,100 ozs.
True All-in Cost (TAIC) $900/oz.
Gross Revenue$5,990,970,000
CFEM Royalty($42,240,000)
Gross Income$5,948,730,000
Total Operating Costs($2,488,640,000)
Operating Profit$3,460,090,000
Income Tax($155,060,400)
Total Capital Costs($486,086,900)
Net Income$2,818,942,700
Net Profit Margin47%
Absolute Cost Structure (ACS)53%
True Value$6.37/sh.
Cash Flow Multiple5x
Annual Cash Flow$164,124,000
Future Market Cap$820,620,000
Future Market Cap Growth876%
Target$1.85/sh.

Notes: All Values in U.S. Dollars