Monthly Metals Mining Rundown and Peer Table - Premium Edition for Month Ending 31 Jan 2025 - Gold Price Reaches New Highs While Gold/Silver Ratio Breaks Out of 2-3 Year Downtrend Signalling the Potential Onset of a Recession

This past month’s metals price movements include: Precious Metals:

Precious Metals:

• Gold up +7.0% over past month to US$2,797/oz Au

• Silver up +6.2% to $31.28/oz Ag

Platinum Group Metals:

• Platinum up +12.4% to $1,033/oz Pt

• Palladium up +18.4% to $1,063/oz Pd

Base Metals:

• Copper up +4.5% to $4.25/lb Cu

• Nickel down -1.9% to $6.91/lb Ni

• Cobalt down -11.3% $9.78/lb Co

Energy Metals:

• Uranium oxide up +1.4% to $71.35/lb U3O8

• Lithium carbonate up +5.4% to $10,825/t LCE

This past months’s top and bottom 5 performing metals mining peer group movers include:

Top 5 performing peer groups:

1. Silver developers’ median up +18.8% to median market cap/oz of $0.34/oz Ag ($29.5/oz AuEq) and to a median P/NAV of 0.51x (at our Reference silver price of $22/oz Ag).

2. Silver producers’ peer group median share performance was up +17.1% to median market cap/oz Ag resource of US$1.13/oz AgEq ($98/oz AuEq)

3. PGM producers’ median up +16.2% to median market cap/oz of $11.9/oz PdEq ($33/oz AuEq)

4. Senior gold producers’ median is up +16% to median market cap/oz of $201/oz AuEq)

5. Intermediate gold producers’ median is up +15.8% to median market cap/oz of $116/oz AuEq)

Bottom 5 performing peer groups:

1. Nickel developers’ median is down -4.2% to median market cap/lb of $0.032/lb NiEq ($12/oz AuEq) and a median P/NAV of 0.1x (at our Reference nickel price of $9.50/lb Ni).

2. Uranium developers’ median is down -1.6% to median market cap/lb of $0.79/lb U3O8e ($28/oz AuEq) and to a median P/NAV of 0.44x at our Reference lithium price of $65/lb U3O8)

3. Uranium producers’ median is down -1.4% to median market cap/lb of $8.46/lb U3O8e ($301/oz AuEq)

4. Uranium explorers’ median is flat at median market cap/lb of $0.93/lb U3O8e ($33/oz AuEq)

5. PGM explorers’ median was flat at a median market cap/oz resource of $2.0/oz PdEq ($5.5/oz AuEq)

Metals mining company announcements incorporated into this month’s Peer Table (resource updates, economic studies, changes in attributable project ownership) include:

• 27 Jan 2025 - Silver developer Discovery Silver (TSX:DSV) announced the transformational acquisition of the producing Porcupine mine complex in the Timmins gold camp from Newmont (NYSE:NEM). This deal is set to roughly double DSV’s gold-equivalent resource ounces to 31.7 Moz AuEq (from 15.3 Moz AuEq). And upon closing expected in H1/25, DSV will immediately graduate to our immediate gold producer peer group from its current silver developer peer group (NEM reported that Porcupine produced 67koz Au in most recent Q3/24). DSV reports they will pay US$425M for the gold mine ($200M cash on closing pending a cap raise, $75M in new DSV shares, with remaining $150M to be paid in cash over next 4 years). DSV’s CEO Tony Makuch has executed company-transforming deals like this before, and on a much bigger scale, after he led the bold move to take out Detour Lake for C$4.9B back in 2019 while at the helm of Kirkland Lake Gold, which turned out to be a home-run (not only because the gold price ripped afterwards, also because it helped lead to Kirkland Lake’s merging with Agnico Eagle NYSE:AEM). Our Peer Table now assumes this DSV deal will close (with a footnote) and we preemptively increase DSV’s shares outstanding to 771 M sh (from Google Finance’s current 400M sh), and add Porcupine’s whopping 12.5 moz Au M&I and 3.9 Moz inferred resource to DSV’s holdings. Based on DSV’s pro-forma share count of 771M, its market cap trades today (31 Jan) at US$815M (afer shares already traded up +55% since the announcment), or at a market cap of US$26/oz AuEq resource (proforma), which is (still) a 13% discount to DSV’s (former) silver developer peer group median of $30/oz AuEq and a much larger 77% discount to (its new) intermediate gold producer peer group median market cap/oz resource of $116/oz AuEq. The deal announcment also included results for a PEA for Porcupine, yielding growing production and an NPV5 of US$1.2B from capex of $854M (over 5 years, to grow production from current levels) at the reported analyst consensus gold price of $2,150/oz. Our Peer Table now reports a (pro-forma) combined NPV of US$1.6B for both Porcupine and Cordero at our (lower) Reference metal prices of $22/oz Ag and $1,800/oz Au, resulting in a P/NAV (pro-forma market cap / combined NPV) of 0.51x (on 31 Jan) - now in-line with our silver developer peer group median of 0.51x (at same Reference metal prices). However, at our recent spot price deck ($31/oz Ag and $2,650/oz Au), DSV’s combined-pro-forma NPV rises sharply to US$5.4B and trades (pro-forma) at corresponding P/NAV of only 0.15x, resulting in a substantial 44% discount to (DSV’s former) silver developer peer group median of 0.24x (at same recent spot metal prices) - highlighting the solid torque that DSV’s projects have on rising metal prices.

• 27 Jan 2025 - Gold (and silver) explorer TDG Gold Corp (TSXV:TDG) announced a strategic investment from silver and gold developer Skeena Resource (NYSE:SKE) as part of a non-brokered financing of up to C$14.5M. Funds will help TDG advance its flagship Greater Shasta-Newberry project ("Greater Shasta Project") in the Toodoggone District, in British Columbia, Canada. According to the announced deal terms, SKE also gets TDG’s non-core Sofia property, and will own 13% of TDG (and its 1.1 Moz AuEq gold and silver Shasta deposit) following the transaction. TDG acheived the top spot in our list of top 40 performing metals mining stocks across our database of 400+ stocks as shown below, after finishing the month up +236% to a market cap of US$47M.

• 23 Jan 2025 - Intermediate gold producer Gold Road Resources (ASX:GOR) announced its annual resource and reserve statement as at 31 Dec 2024. The company’s reported attributable gold resources increased by 0.3 Moz or 6% to 4.81 Moz.

• 22 Jan 2025 - Lithium producer Pilbara Minerals (ASX:PLS) announced that its acquistion of Latin Resources (ASX:LRS) has become legally effective, and we have added LRS resource holdings to PLS resource holdings in our Peer Table, and removed LRS from the Peer Table, which was to be suspended from ASX trading. On market cap/t LCE, PLS leads the pack of ASX Li producers at a market cap/t LCE of $309/t LCE ($79/oz AuEq) on 31 Jan, but this is only a slight premium to our 10 company lithium producer peer group median of $264/t LCEe, which is still a far cry from the valuation of the most dominant players in the group (SQM, Albermarle, and Arcadium, trading at $1783, $708, and $522/t LCEe) - offering much upside potential for PLS still.

• 21 Jan 2025 - Sitka Gold (TSXV:SIG) announced a resource update for its RC Gold project in Yukon. The project’s Blackjack deposit is growing remarkably fast, with its gold resources increasing by 159% (2.6x) to 2.3 Moz Au (from 0.9 Moz) since just 2023, with the the overall RC project resources (including Eiger deposit) growing by more than double (107%) to 2.8 Moz (from 1.3 Moz).

• 20 Jan 2025 - American Pacific Mining (CSE:USGD) announced a resource update for its 100%-owned Palmer Copper-polymetallic project in Alaska. The update grew USGD’s copper-equivlent resources by just over 8% to to 1.2 Blbs CuEq (27% from Cu). USGD trades at P/NAV (taken as market cap / NPV from company’s 2019 PEA) of only 0.05× (on 31 Jan) - a 47% discount to our copper devleoper peer group (28 company) median of 0.09x (all adjusted for our Reference copper price of $3.50/lb Cu according to NPV sensitivity analysis provided by each company in each economic study), depsite the Palmer project’s relatively high resource grades of both Cu and Zn.

• 28 Nov 2024 - Wildcat Resources (ASX:WC8) delivered a large maiden hard rock lithium resource of 1.8 Mt LCE grading 1.0% lithium oxide (plus tantalum and iron oxide), and the company and resources were added to our Peer Table’s lithium hard rock explorer peer group (after recently being flagged as missing from the Peer Table).

• 14 Jan 2025 - Gold developer (and current small-scale producer) Heliostar Metals (TSXV:HSTR) released 3 updated techincal reporrs with economic studies for 3 different development stage projects recently acquired in Mexico. The post-tax NPV5 of US$25.9M for the most advanced project - La Colorada past-producing mine where small-scale production resumed earlier this month - was somehwat dwarfed by its capex of 53.9M, which seemed to disappoint some investors based on the 5% drop in the HSTR share price that day and 13% drop over week that followed (vs. our Peer Table’s flat 0% gold developer peer group median share performance for both periods). However, the combined NPVs for all 3 projects, together with the NPV for a 2023 PFS for a 4th Mexican development project, Ana Paula, together equate to US$722M (adjusted for our Reference gold price of $1,800/oz, according to the NPV sensivity analysis provided in each study). HSTR’s month ending market cap of only US$119M implies a price-to-net-asset-value (“P/NAV”, taken as mkt cap/NPV) of only 0.16x - now a 14% discount to our gold developer peer group median P/NAV of 0.19x (based on study results for 54 companies in our gold developer peer group – also adjusted for our Reference gold price of $1,800 using the NPV sensitivity information provided in each study). On market cap/oz Au resource, HSTR’s existing 8.4 Moz AuEq (85% from Au) trade similarly cheap, at a market cap of US$14/oz AuEq – a 33% discount to our gold developer median US$21/oz AuEq. This is interesting given how close HSTR is to becoming a mid-tier producer, once it expands current small-scale gold production at La Colorada to a commercial-scale 50+ koz/yr (as it plans to do, following another updated technical report due mid-2025, targeting lower capex). Our mid-tier (intermediate) gold producer peer group of 50 producers has a median mkt cap / oz is US$116/oz AuEq resource (offering 8.3x upside to HSTR’s market cap of $14/oz). HSTR also acheived a top 40 performer spot this month, after the stock finished the month up +37% to a market cap of US$119M (on 31 Jan).

• 15 Jan 2025 - Uranium Energy (NYSE:UEC) announced the purchase of 107.1M shares of Anfield Energy (TSXV:AEC), bringing total holdings up to 203.4M shares for 17.8%.15 Jan 2025 - Encore Energy (NYSE:EU) sold 15M shares of AEC and now owns 170M shares for 16.84%.

• 16 Jan 2025 - Gogold Resources’ (TSX:GGD) announced Feasibility Study (FS) results for its Los Ricos South (LRS) Silver-polymetallic project in Mexico, replacing old 2023 PEA results for that project. The FS NPV results were in-line with 2023 PEA results (down slightly, at comparable metal pricing). And this FS excluded the ecnomics of the company’s neighbouring project, Los Ricos North (LRN), where a PEA was released in 2023. If both the NPVs from this 2025 FS (for LRS) and 2023 PEA (for LRN) are combined, they together equate to US$1.3B (adjusted for our Recent Spot silver price of US$30.78/oz Ag, based on the NPV sensitivity information provided in each study), neglecting additional NPV contribution from small-moderate scale silver-polymetallic production from the Company’s Parral tailings reprocessing project. GGD’s week month market cap of only US$352M implies a price-to-net-asset-value (“P/NAV”, taken as mkt cap/NPV) of only 0.27x - in-line with our silver developer peer group median P/NAV of 0.27x (based on study results for 12 companies in our silver developer peer group – also adjusted to our Recent spot silver price of $30.78/oz Ag using the NPV sensitivity information provided in each study). This is interesting, becaused GGD also has steadily rising small (to moderate) scale silver-polymetallic production from its Parral tailings reprocessing project (which has steadily risen to 551 Koz AgEq in Q4/24 from 301 koz AgEq in Q2/23). And our silver producer peer group of 16 producers has a median mkt cap / oz resource of US$1.13/oz AgEq ($98/oz AuEq), offering 3.3x upside from our silver developer peer group of 12 companies whose median market cap is $0.34/oz AgEq ($30/oz AuEq).