Weekly Metals Mining Rundown and Peer Table - Free Edition for Week Ending 14 Feb 2025 - Gold/Silver Ratio Continues to Breakout Suggesting Recession - Covers Announcements by $AEM $TQM $STN $USAU $EMR

This past week’s metal price movements include:

• Copper price up +4.9% to $4.63/lb Cu

• Uranium price down -6.5% to 66.45/lb U3O8

• Palladium down -2.5% to $986/oz Pd

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

This past week’s top 40 performing metals mining stocks (out of 423) include (share price rounding errors apply, as sourced from Google Finance):

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

• Senior gold producer Agnico Eagle (NYSE:AEM) provided an update on its 2024 exploration results and exploration plans for 2025. The update included an updated mineral reserve and resource statement. Reserves increased 1% year-over-year to 54.3Moz, with measured and indicated resources (exclusive of reserves) decreasing 2.3% to 43Moz, and total resources also including reserves and inferred resources increasing by 2.3% to 145.6Moz AuEq (94% from Au). While not the most appropriate valuation method for producers, AEM trades at a market cap/oz resource of $332/oz AuEq (14 Feb) - a 51% premium to the 9 company senior gold producer median of $220/oz. This premium seems well justified given AEM’s dominant size of US$51B vs median $14B and its total resources of 146Moz vs median 61Moz, and on top of this the company’s especially low country risk profile versus most of its peers, and the fact that much of its production is higher-grade and lower-cost than most of its peers.

• Copper developer Trilogy Metals (TSE:TQM) filed a PEA Technical Report for its 50%-owned Bornite project in Alaska (secondary project). The study results were pre-released on 15 Jan 2025 but had excluded the NPV sensitivity analysis that is now provided in the technical report and added to our Peer Table. Post-tax NPV8 was US$522M (100% ownership basis) at $4.2/lb Cu from initial capex of $504M. This study increases the company’s combined NPV (including the 2023 FS-stage Arctic project also in Alaska) to $1,046M (50% basis for each project, at our 3-month trailing average copper price which also happens to be $4.20/lb Cu), and the stock trades at a market cap of 21% (14 Feb) of this (inferring a P/NAV of 0.21x) - a slight premium to our copper developer mean of 0.17x (and median of 0.06x) in part due to the advanced feasibility-stage of its flagship Arctic project.

• 12 Feb 2025 - Gold developer Saturn Metals (ASX:STN) announced a resource update for its flagship PEA-stage Apollo Hill project in Western Australia, which increased total resources by 10% to 2.03Moz grading 0.53g/t Au and Measured and Indicated resources by 14% to 1.15Moz, following an additional 8,780m of drilling completed since mid-2023. And more resource growth can be expected as this 8,780m is part of an ongoing 65,000m drill program being completed ahead of a PFS targeted for completion in late 2025. What’s particularly impressive is the track record of steadily-increasing resources since the Company listed in 2018 - and there appears to be significantly more mineralization that is already drilled and outside of the current resource pit shell. With this resource update, STN trades at a market cap/oz of US$27/oz - roughly in-line with our gold developer peer group (58 stocks) median of $24/oz - and at a P/NAV of 0.086x (based on company’s 2023 PEA results) at our 3-month trailing average spot gold price estimate of $2,674/oz Au - in line with our gold developer peer group (56 stocks) median P/NAV of 0.08x.

• 11 Feb 2025 - Gold developer US Gold Corp (NYSE:USAU) announced a PFS update for its 100%-owned CK gold project in Wyoming, that incorporates recent permitting and optimization advances, and paves the way for a feasibility study. The PFS update’s post-tax NPV5 was $356M from initial capex of only $277M, with near-lower-quartile-range AISC of 937/oz AuEq (CK resource is 68% gold, 30% copper, 2% silver, by metal value), which helps justify USAU’s premium P/NAV of 0.48x at our Reference gold price of $1,800/oz (vs. mean 0.49x and median 0.24x) and a P/NAV of 0.18x at our recent gold price estimate of $2,674/oz Au (vs. mean 0.14x and median 0.08x).

• 10 Feb 2025 - Low-cost, intermediate gold producer Emerald Resources NL (ASX:EMR) announced a resource and reserve update for its flagship producing Okvau gold mine in Cambodia, which increased its reserves by a net 143 koz (245 koz including depletion of 102 koz), resulting in a new reserve of 700 koz Au grading 1.5g/t Au (including a higher-grade in-pit portion of 0.6 koz grading 1.7g/t Au) - a 27% increase from the 550 koz reserve announced in March 2024. And this reserves growth after depletion was achieved while ALSO growing the mine’s combined mineral resources by a net 34koz (136koz including 102koz of depletion), resulting in a slightly larger resource of 910 koz compared to that of March 2024, which the company highlights continues to support its view that resources will be replenished on an ongoing basis.” Total company mineral resources including the company’s two non-producing development projects stand at 3.05Moz grading 1.5g/t Au. EMR trades in our Peer Table at a premium to most peers, at a market cap of US$1.8B (or market cap/oz Au resource of US$594/oz), apparently given the high productivity and profitability of its flagship producing Okvau (and the anticipated productivity of its two development stage projects for which feasibility studies are underway and development activities are slated to begin before yearend: Memot project also in Cambodia with similar high open-pit grades, and Dingo project in Western Australia). EMR’s high productivity/profitability of its mineral assets is driven by its relatively high open-pit reserve grade of 1.7g/t Au, which has helped lead to consistent near-lower-quartile-range AISC below $1,000/oz recently and solid cash flows (Q4 pre-tax operating cash flow from Oktvau was US$58.4M, up from $37.8M in Q3 on higher gold prices) after the mine just came online in 2021. This high productivity/profitability of EMR’s assets make EMR a good potential take-out target for larger gold producer looking to add growing cash flow from EMR’s single producing mine and 2 near-development projects - perhaps comparable to how Roxgold was acquired by (merged with) Fortuna Mining (TSX:FVI) in 2021 for a transaction value of C$1.1B, for Roxgold’s low-cost, producing Yaramoko mine in Burkina Faso along with its feasibility-stage Seguela project in Cote D’Ivoire (which FVI later constructed and is now producing) and a pipeline of exploration projects. And although Cambodia may still be considered an emerging mining jurisdiction (not so different than some West African jurisdictions such as Burkina Faso and Cote d’Ivoire), investors may be encouraged to see that it was included in the Fraser Institute’s annual survey for the first time ever earlier this year in its latest 2023 survey (new 2024 survey is due for release in the coming weeks). https://www.fraserinstitute.org/sites/default/files/2023-annual-survey-of-mining-companies.pdf