$SSPXF : Sandspring Resources — Updated Valuation

Sandspring has released an updated PEA. Consequently, we have issued a set of updated valuation models that better reflect the re-scoped Project and updated September 2018 Mineral Resource Estimate. We have been Sandspring shareholders for 18 mos. and we maintain a U.S. $3.92/sh. target based upon our in-house Projected Market Cap Valuation Model, which is calculated utilizing $1,500/oz. Au, $20/oz. Ag and $3/lb. Cu spot prices and 8,251,800 AuEq ozs. (Inclusive of Reserves), per our own estimates..

Realized Gold & Silver Prices$1,500/oz. Au & $20/oz. Ag
Flagship ProjectToroparu
Resource Base (M&I)8,251,800 AuEq ozs.
Fully-Diluted Shares315,544,790
Fully-Diluted Market Cap$40,421,288
Average Annual Production (Au, Ag, Cu)199,872 AuEq ozs.
LoM24 Years
AISC$826
Cost Structure62%
Market Cap Valuation Per Resource Ounce$4.90
Share Price Valuation by Resources in the Ground.03 ozs. ($35)
Resource Valuation as a Percentage of Market Cap.3%
Market Cap Valuation$1,099,964,940
Cash Flow$101,335,104
Future Cash Flow$134,713,728
Cash Flow Multiple.4x
Future Market Cap$1,237,770,000
Future Market Cap Growth2,962%
PMCV10 (Projected Market Cap Valuation at 10%)$3.92

Notes: All Values in U.S. Dollars

The Toroparu Gold Deposit has a unique value-add feature: The Kurupung Hydro River Project, which would enable Sandspring to not only someday self-generate, but to interconnect with the Guyana National Grid… (Sandspring Power & Light ?)

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