Fort Capital Investment Banking Pitch Book
Implied IRR Analysis
Implied IRR rates of the North Bullfrog and Mother Lode projects are between 9.7% -11.7% and 10.8% -
12.5% respectively
Risk of each project is higher than a standard 5.0% discount rate widely used in the industry
Mother Lode project is also riskier than North Bullfrog project due to need for layback and sulfide
treatments
.
- Implied IRR of the North Bullfrog project assuming purchase price of 0.6x-0.7x NPV5% is
11.7% -9.7%
DCF Analysis - Consensus Pricing
Valuation Y-2
Date
2022
North Bullfrog
Net Revenue
EBT
Nevada NPT
Federal Income Tax
Depredation
Captal Expenses
Net Cash Flow After Tax
PINA V Multiple
NPV
Implied IRR of the Mother Lode project assuming purchase price of 0.35x -0.45x NPV 5% is
12.5% -10.8%
Uptront Payment
impliedIRR
Mother Lode
Net Revenue
Less Operating Expenses
EBT
Nevada NPT
Federal Income Tax
Depreciation
Captal Expenses
Upfront Payment
Net Cash Flow After Tax
PINAV Muitole
NPV
Uptront Payment
ImaledIRR
Corvus
unts
(USSM)
(LGS 16
USSM
(USS
(USS
(USS)
(US$ 10
AUSSM)
10.00
IUSS LA
(US$ 14
unts
AUSS MI
(USS LA
USSMY
(US$ 14
(USS 10
(USS 14
(USS 10
(LES
AUSSMY
10.000
(UGS 14
(USS M
5290
($250)
LOW
MO
0.60x 0.65x
$483
$483
$250
$314
11.7% 10.7%
Valuation
Date
(594)
($54)
Y-S
2022
0.35x
0.40x
$268 $268
$34
$107
12.5%
2023
167)
(167)
Hon
0.70x
$483
$338
9.7%
Y4
20 23
Hot
0.45x
$268
$121
Y₁
2024
$123
(5138)
($15)
$11
641
(59)
Y-3
2024
Y2
2025
2026
$251
$325
$148 $130
Y-2
2025
(56)
5111
(510)
(531) (530)
(54)
$22
$34
534
($111
5301
1981
$147 $154
Y-1
2026
YA
2027
(5406)
($405)
$309
$279
$125) ($1411
$184 $138
$171
YI
2027
$335
Y5
2028
(54)
$73
(523)
$231
544
(13861
Y2
2028
$271
(5210)
$61
(55)
(30)
YC
2023
$59
$220
$81
(55)
(512)
$35
$56
(513)
(529)
598
(53)
$105 $232
2023
$356
$150
Y7
2030
$191
(54)
$30
52
$83
(35)
2031
$151
$41
987
(520)
$74
(531
(96)
524
Y4
2030
YS
2031
$282 $116
($245) $165)
52
$29
($10)
Key Assumptions
Valuation Date
BF P/NAV Multiple
ML P/NAV Multiple
2032
$147
$28
(52)
6551
$30
(526)
$24
YG
$284
($168)
$56
Y10
2033
$121
$11
17
(51)
(531
$24
52
Y7
2033
(57) ($10)
(98) (521)
$70
53
$156
2034
$112
($111)
$1
$74
$11
$195
611
521
YS
2034
$333 $140
1911 ($114)
$142
$25
521
$2
$22
526
53
$52
17
September 10, 2021
0.6x-0.7x NPV5%
0.35x-0.45X NPV%
Y12
2035
$92
($5)
$17
$2
$10
Y
2035
$15
(52)
$3
50
$1
Y13
2036
$62
W
Y10
2036
M
$10
$1
$8
$0
Y14
2037
$17
($2)
.
53
50
$1
Y11
2037
34
Y15
2038
$5
(153)
$1
50
$21
Y12
2038
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