BAT Upside Comparisons with SYR and BSM, page-24

The USD exchange rate is 0.71. AUD $5.5M = USD $3.9M.

An EBITDA figure already has processing costs removed.

I worked out an EBITDA multiple of 6.5 based on company forecast USD $30M EBITDA for 50kt of production. Doing the calculations in USD after converting the MCAP metric from AUD.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	AUD MCAP / kt	USD MCAP / kt	Annual Production	Indicative MCAP (USD)	Montepuez Stage 1 EBITDA (USD)	EBITDA Multiple
1	AUD $ 5.5M	USD $ 3.9M	50 kt	USD $ 195M	USD $ 30M	6.5

I think an EBITDA multiple of 6.5 (before interest, tax, etc) would translate into a P/E of about 9.0 to 10.0 ( after tax ). Because of consolidated losses there should be no tax bill for much of the first year or two. Current consolidated losses are around AUD $31M last I looked. We should see the next annual report towards the end of April which will have an update of consolidated losses.

We are yet to confirm how much of the USD $39.5M CAPEX will be funded by debt. I'm also currently thinking $10-12M working capital required beyond the CAPEX requirement. If they can get finance over the line in Q2 they should still have a few million dollars of working capital left in addition to what they raise in equity.

They won't be spending any more money on Balama exploration now that the Balama DFS is done. That should mean working capital is focused towards getting Montepuez Stage 1 into production. Grade control drilling for Montepuez has also been done.