Pond Chairs 1509 80%

BARKERVILLE BUSINESS PERFORMANCE: 71%

MAY 2016

 

                ASSET PERFORMANCE FACTORS (all are 1 to 10)

BLUE SKY  3

They have plenty of claims to explore, particularly since they just acquired some new claims Their focus is rightfully on pushing what they have to feasibility and production They previously announced an enormous resource which later proved fictitious

REGULATORY ISSUES 4

They need permits for mining and British Columbia is difficult to permit in Though I expect it to get done eventually

COUNTRY RISK 10

British Columbia is sound

PROPERTIES 10

Bonanza Ledge is shallow and open pit

High grades

2.8M ounces indicated and 2M inferred is a large resource nowadays

EXTERNAL FACTORS

MARKETPLACE (supply/demand, financing environment) 3 Gold prices are very low, making it unprofitable to produce for most miners Financing is difficult to impossible Though they have access to deep pockets

PEER VALUATION 7

They are valued at $31/ounce (inferred and indicated), which is a bit high I’d prefer to see it about $25/ounce That said, if plans go as expected they will be worth a lot more than their present $150 million MV

BUSINESS STRATEGY (and operations) 10

Their business strategy is sound: explore while pushing to production

INTERNAL FACTORS

MANAGEMENT (Ownership, g&a) 10

Experienced management in a variety of functions

FINANCIAL STRATEGY  (cash, overhang) 4

Plenty of cash for this year into the next If they find more gold or get closer to production they should be able to attain more financing Nonetheless they are not producing cash flow right now

PROJECT MANAGEMENT AND DIRECTION 10

They have clear milestones, both past and present VI. THE PRESENTATION General (1-7)

Stuck to the presentation?          4

Sophistication appropriate?        3 NOt much financial detail

Easy to read?                                     7

Appropriate length?                       3 Short

Control of emotions, politics       7

Handled questions well                 7

 

The Handouts

Page numbers?                                                Y

Peer comparisons                            n

Management Bios?                         y

Price chart                                           n

Financial forecasts                           n

Budgets                                               n

 

Projects and timelines

Timeline?                                            n

Project pipeline?                                              n

Permitting timeline                         n

Mining charts                                     Y

Milestones?                                       y

This year’s drilling Program          n

 

Other notes:

Michael Emerald, CFA

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