GoviEx Uranium: FCM Advanced Resource Stock Valuation

Flagship Projects

Niger: Madaouela = 100% Ownership

Zambia: Mutanga = 100% Ownership

Crucial Data — General

Fully-Diluted Shares = 506,190,000

Fully-Diluted Market Cap @ US 0.176/share = 90,253,677

Measured & Indicated Resources (Madaouela + Mutanga) = 125,960,000 Mlbs. U308

Cash = US $6M

Debt = US $9,100,000

Debt Coverage @ $70/lb. = $2900%

Average Cost Structure (Madaouela + Mutanga) = 51%

Crucial Data — Madaouela

NPV = US $340M

IRR = 21.9%

CapEx = US $359 M

NPV/CapEx = 95%

Crucial Data — Mutanga

NPV = US $269M

IRR = 25%

CapEx = US $121 M

NPV/CapEx = 222%

GoviEx Uranium — Advanced Valuations

Market Cap Value per Lb. = US $0.72

In other words, each lb. U308 in the ground is valued at US $0.72 by Market Cap.

Share Price Valuation by Resources in the Ground = 0.25 lbs. U308

In other words, each share represents 0.25 lbs. of U308. At $70/lb., each share is worth $17.42 U308 in the ground.

This is why the Market Cap is relatively low. If GoviEx had fewer shares or more resources, it would be valued higher by the Invisible Hand.

Market Cap Valuation as a Percentage of Resources = 3%

The Market Cap value is extremely low relative to the present value of resources (US $3,023,040,000 @ 24/lb. U308). There is room for significant Market Cap appreciation.

Back-of-the-Envelope Market Cap Valuation = US $453,456,000 @ $24/lb.

With a fully-diluted Market Cap of 90,253,677, GoviEx is significantly undervalued.

Near-Future Cash Flow Multiple @ 24/lb. = -2.8x

Near-future cash flow, as expected is US $-31,740,000

Future Cash Flow @ $70/lb = US $185,150,000
Future Market Cap @ $70/lb. = US $881,720,000
Future Market Cap Growth Percentage = 877%

Conclusion

GoviEx Uranium is significantly undervalued. We believe its Market Cap could appreciate by as much as 900% with higher spot U308 prices. Our target price is US $1.74.

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