Fort Capital Investment Banking Pitch Book
Valuation Summary
Key forms of analysis
• In reaching our conclusion with respect to the Valuation, we have considered the following
- Net asset value ("NAV") analysis
- Forecast developed with management assistance based largely on the Technical Report NI 43-101 mine plans effective
November 2020 (the "PEA models") for both the North Bullfrog and Mother Lode projects
-
The following changes have also been made to the PEA models to reflect an updated profile. The revised model is referred to as
a Base Case scenario
Reflected recent consensus commodity pricing (assumes long term gold price of $1,600 per ounce)
- Included additional $4M of pre-construction development expenditures to be spent in 2021, $20M in 2022 to get the
North Bullfrog project to a final investment decision stage ("FID")
--$3M per year in corporate costs above the mine level (excludes public company costs that would be eliminated as part
of the Transaction)
Corvus
GOLD INC
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Reflect the Valuation Date (September 10, 2021) versus the starting construction dates as reflected in the PEA models
- Adjusted the construction start date to 2023 and 2026 for North Bullfrog and Mother Lode, respectively
We have applied a 5% discount rate to make the projects comparable with other development projects and in keeping with
industry standards
- We have then reflected the value of any other exploration assets, debt or cash to develop the net asset value for the Company
Based on the risk profile of the underlying projects, we have then applied a discount to the underlying NAV, as well as comparing
the implied discount rate as determined by the adjusted NAV relative to overall risk profile of the Company
Comparable company analysis
- Fort Capital has assessed P/NAV multiples of comparable gold developers with assets North America as well as EV/Reserve and
EV/Resources trading multiples
Precedent transaction analysis
- We have considered gold project precedents with estimated NAV multiples and asset based metrics such as EV/Reserves and
EV/Resources, and Total Acquisition Cost (TAC)
Fort Capital typically places primary reliance on NAV analysis given the nature of the projects, the assumptions for revenue and
operating costs and the capital expenditures required to place the projects into production
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