Ann: Trading Halt, page-16

Hi @nordesmic

Can you take a look at the 2016 SEMAFO FS for Natougou at the below link.

https://s2.q4cdn.com/795832262/files/doc_news/2016/Natougou-FS-Press-release_FINAL-EN.pdf

The FS is based on $1,100 gold but it's unclear if this is the US gold price or Canadian gold price.

The sensitivity analysis gives a NPV for Natougou of $334M @ a 5% discount rate for $1,200 gold.

Surely these are US dollar gold prices but they don't explicitly say, that I can see. Given SEMAFO reports on TSX you would assume that they would need to report all dollar amounts in Canadian dollars unless specified differently.

The Canadian price of gold in 2016 at the time of publication of the FS was $1,681 which makes me think it must be the US dollar gold price. If so, then at $1,300 gold the NPV would rise to $406M (Canadian) assuming a linear sensitivity to the gold price.

The FS also assumed the following exchange rates: $0.72 US dollars to the Canadian dollar
and $1.09 US dollars to the EURO. Currently these rates are $0.78 and $1.20 respectively. I'm not sure how these changes would effect the valuation.

The Natougou FS was based on the below reserve and resource numbers. Interesting to see how far WAF can develop their reserves/resources. I think its probably best that they go as hard as they can, so the more money the better in some ways, because even though the OBS shareholders approved the last minute 60cent raising, it did stop the company from getting taken over. I think the OBS example probably proves that the best defence is to have the best reserves and resources you can drill and the best FS you can produce as early as possible.

Do you agree that it's US gold prices they have used and Canadian dollars for the rest of the FS metrics, because it annoys me to have to make this assumption. Esh