MINE VALUATION OF A TYPICAL GOLD DEPOSIT

Technical Parameters

Operating Expenses

Pre-Operating Expenses

Others

Period
Year
Operating Days
Recoverable Ore Reserves 44,285,198
Annual Ore Production 4,428,520
Annual Waste Production 13,285,559
Head Grade 1.24
Gold Production

Gross Revenue
Less:
Mining Ore 2.00
Waste Stripping 1.56
Milling 2.11
G&A Expenses 1.00
Ad Valorem Tax 2% of Gross Revenue
Marketing Cost 10 US$/oz
IP Royalty 1% of Gross Revenue
Business Tax 2% of Gross Revenue
Claimowner Royalty 5% of Gross Revenue
HSE 7% of Mining and Milling Cost
Decommissioning 10% HSE Cost
Depreciation
Depletion
Social Development 1.5% Total Operating Cost
Total Operating Cost

EBIT
Less:
Income Tax 30% EBIT
NPAT
Add Back:
Depreciation
Depletion

Less:
CAPEX

Net Operating Cashflow

Discount Factor 12%
Present Value
Cumulative PV

NPV
IRR
Payback

Profitability Index

Initial Investment 80,000,000

Working Capital 100,000,000
Pre-Operating Envi Cost 10%
Exploration Cost 150,000,000
CDP Cost 10%
Permitting 30,000,000
Capital Expenses
OLD DEPOSIT
In Situ Ore Reserves 52,100,233 wmt
Gold Grade 1.3 gpt Au
Mine Recovery 85%
Dilution 5%
Operating Days/yr 300 operating days/yr
Mine Life 10 yrs
Waste: Ore Ratio 3.00
Mill Recovery 85%
Gold Price 800 US$/oz
Mining Ore 90 PhP/wmt ore
Waste Stripping 70 PhP/wmt waste
Milling 95 PhP/wmt ore
G&A Expenses 45 PhP/wmt ore
Ad Valorem Tax 2% of Gross Revenue
Marketing Cost 10 US$/oz
IP Royalty 1% of Gross Revenue
Business Tax 2% of Gross Revenue
Claimowner Royalty 5% of Gross Revenue
HSE 7% of Mining and Milling Cost
Decommissioning 10% of HSE Cost
Social Development 1.5% Total Operating Cost
Initial Investment 80,000,000 US$
Pre-Operating Environmental Cost 10% of Initial Investment
Working Capital 100,000,000 PhP
Exploration Cost 150,000,000 PhP
CDP Cost 10% Exploration Cost
Permitting 30,000,000 PhP
Forex 45 PhP/US$
1 oz 31.10347 grams
Discount Factor 12%

0 1 2 3
Year 0 Year 1 Year 2 Year 3
days 300 300 300
wmt
wmt 4,428,520 4,428,520 4,428,520
wmt 13,285,559 13,285,559 13,285,559
gpt Au 1.24 1.24 1.24
grams Au 4,648,839 4,648,839 4,648,839
oz Au 149,464 149,464 149,464
US$ 119,570,933 119,570,933 119,570,933

US$ 8,857,040 8,857,040 8,857,040

US$ 20,666,426 20,666,426 20,666,426
US$ 9,349,097 9,349,097 9,349,097
US$ 4,428,520 4,428,520 4,428,520
US$ 2,391,419 2,391,419 2,391,419
US$ 1,494,637 1,494,637 1,494,637
US$ 1,195,709 1,195,709 1,195,709
US$ 2,391,419 2,391,419 2,391,419
US$ 5,978,547 5,978,547 5,978,547
US$ 2,721,079 2,721,079 2,721,079
US$ 272,108 272,108 272,108
US$ 8,222,222 8,222,222 8,222,222
US$ 1,233,333 1,233,333 1,233,333
US$ 1,038,023 1,038,023 1,038,023
US$ 70,239,579 70,239,579 70,239,579
US$/oz Au 469.94 469.94 469.94
US$ 49,331,354 49,331,354 49,331,354

US$ 14,799,406 14,799,406 14,799,406

US$ 34,531,948 34,531,948 34,531,948

US$ 8,222,222 8,222,222 8,222,222

US$ 1,233,333 1,233,333 1,233,333

US$ 94,555,556

US$ -94,555,556 43,987,504 43,987,504 43,987,504

1.00 0.89 0.80 0.71
US$ -94,555,556 39,274,557 35,066,569 31,309,436
-94,555,556 -55,280,999 -20,214,430 11,095,006

US$ 153,983,651
% 45%
yrs 2.65 1.00 0.65 0.00

2.63

US$ 80,000,000 US$

PhP 2,222,222 US$
Initial Investment 8,000,000 US$
PhP 3,333,333 US$ CDP
Exploration Cost 333,333 US$ CSR
PhP 666,667 US$
94,555,556 US$
 4 5 6 7 8 9 10
Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
300 300 300 300 300 300 300

4,428,520 4,428,520 4,428,520 4,428,520 4,428,520 4,428,520 4,428,520

13,285,559 13,285,559 13,285,559 13,285,559 13,285,559 13,285,559 13,285,559
1.24 1.24 1.24 1.24 1.24 1.24 1.24
4,648,839 4,648,839 4,648,839 4,648,839 4,648,839 4,648,839 4,648,839
149,464 149,464 149,464 149,464 149,464 149,464 149,464
119,570,933 119,570,933 119,570,933 119,570,933 119,570,933 119,570,933 119,570,933

8,857,040 8,857,040 8,857,040 8,857,040 8,857,040 8,857,040 8,857,040

20,666,426 20,666,426 20,666,426 20,666,426 20,666,426 20,666,426 20,666,426
 9,349,097 9,349,097 9,349,097 9,349,097 9,349,097 9,349,097 9,349,097
4,428,520 4,428,520 4,428,520 4,428,520 4,428,520 4,428,520 4,428,520
2,391,419 2,391,419 2,391,419 2,391,419 2,391,419 2,391,419 2,391,419
1,494,637 1,494,637 1,494,637 1,494,637 1,494,637 1,494,637 1,494,637
1,195,709 1,195,709 1,195,709 1,195,709 1,195,709 1,195,709 1,195,709
2,391,419 2,391,419 2,391,419 2,391,419 2,391,419 2,391,419 2,391,419
5,978,547 5,978,547 5,978,547 5,978,547 5,978,547 5,978,547 5,978,547
2,721,079 2,721,079 2,721,079 2,721,079 2,721,079 2,721,079 2,721,079
272,108 272,108 272,108 272,108 272,108 272,108 272,108
8,222,222 8,222,222 8,222,222 8,222,222 8,222,222 8,222,222 8,222,222
1,233,333 1,233,333 1,233,333 1,233,333 1,233,333 1,233,333 1,233,333
1,038,023 1,038,023 1,038,023 1,038,023 1,038,023 1,038,023 1,038,023
70,239,579 70,239,579 70,239,579 70,239,579 70,239,579 70,239,579 70,239,579
469.94 469.94 469.94 469.94 469.94 469.94 469.94
49,331,354 49,331,354 49,331,354 49,331,354 49,331,354 49,331,354 49,331,354

14,799,406 14,799,406 14,799,406 14,799,406 14,799,406 14,799,406 14,799,406

34,531,948 34,531,948 34,531,948 34,531,948 34,531,948 34,531,948 34,531,948

8,222,222 8,222,222 8,222,222 8,222,222 8,222,222 8,222,222 8,222,222

1,233,333 1,233,333 1,233,333 1,233,333 1,233,333 1,233,333 1,233,333

43,987,504 43,987,504 43,987,504 43,987,504 43,987,504 43,987,504 43,987,504

0.64 0.57 0.51 0.45 0.40 0.36 0.32
27,954,854 24,959,691 22,285,438 19,897,713 17,765,815 15,862,335 14,162,799
39,049,860 64,009,551 86,294,989 106,192,702 123,958,517 139,820,852 153,983,651

0.00 0.00 0.00 0.00 0.00 0.00 0.00

Community Development Program

Corporate Social Responsibility
TOTAL Unit Cost
US$/wmt ore

44,285,198
132,855,594

46,488,387
1,494,637
1,195,709,332 27.00

88,570,396 2.00
206,664,258 4.67
 93,490,974 2.11
44,285,198 1.00
23,914,187 0.54
14,946,367 0.34
11,957,093 0.27
23,914,187 0.54
59,785,467 1.35
27,210,794 0.61
2,721,079 0.06
82,222,222 1.86
12,333,333 0.28
10,380,233 0.23
702,395,787 15.86

493,313,544 11.14

147,994,063 3.34
345,319,481 7.80

82,222,222 1.86
12,333,333 0.28

439,875,036 9.93