Marathon Gold: Under the Microscope

Flagship Property: Valentine Lake Gold Camp = 100% Ownership … 1 Point

After-tax IRR = 25% … 1 Point

NPV/CapEx = 96% … 1 Point

F/D Market Cap per Resource Ounce = $54 … 1 Point

Cost Structure = 45% … 1 Point

Resource Base = 2,137,000 M oz. … 1 Point

Future Cash Flow = US $359,092,500 … Unrated

Future Cash Flow Multiple = 3x … -1 Point

Share Structure = 160,165,202 … 1 Point

Debt Coverage = 0 Debt … 1 Point

Projected Future Market Cap = US $801,525,00 … Unrated

Projected Future Market Cap Growth Percentage = 586% … 1 Point

Location: Central Newfoundland … 1 Point

Conclusion

We love Marathon Gold’s well-run Flagship Project. Management has the talent, passion and vision to see it through to production. What is more, Valentine’s Marathon and Leprechaun deposits are open to expansion, so we expect resources to grow. We have a target of $6.86 a share.

Score

10/11


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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