$PZG : Paramount Gold Nevada — Independent Economic Analysis

Long-Term Price Case$2,000/oz. Au
Flagship ProjectGrassy Mountain
Mineral Resources367,916 AuEq ozs.
Shares Outstanding32,960,000
Market Cap42,848,000
Recoveries Au/Ag92.8%/73.5%
Average Annual Production45,989 AuEq ozs.
LoM8 Years
True All-in Cost (TAIC) $930/oz.
Gross Revenue$735,832,000
Total Operating Cost($120,500,000)
Operating Profit$615,332,000
Total Capital Cost($129,400,000)
Net Income$393,632,200
Net Profit Margin53%
Absolute Cost Structure (ACS)47%
MTQ Score1.13
True Value$11.94/sh.
Cash Flow Multiple11x
Annual Cash Flow$49,208,230
Future Market Cap$541,290,530
Future Market Cap Growth1,163%

Notes: All Values in U.S. Dollars.

Paramount Gold Nevada is a growth company in the making and will likely be awarded a rich premium on the back of timely execution, exemplary management, a robust asset pipeline in a friendly jurisdiction, and a high probability of discovery at Frost.

Paramount’s Net Profit Margin and Absolute Cost Structure are excellent which enables us to award the company with a 11x cash flow multiple resulting in possible Market Cap appreciation of up to 1,163%.

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