Equity Valuation of CUU

When considering how CUU will be valued for an offer, consider the following,

The main points of interest will be in the analysis which will look at the geological model and potential in both the SC deposit and trend, the qualitative aspects, risk including geopolitical, the industry, it's trend and macroeconomics and the financials.

Secondly Teck will use valuation methods which will include, but are not limited to cash flow (which CUU will have a lot of). Often cash flow is discounted depending on where the Junior is within the development process. This is where CUU sticks out in my opinion. We have infrastructure both coming and already secured. We are NOT the casino project with a 130km road needed, banking on a NG based power supply and haul fuel that is still in the development stages.

Real options valuation(ROV)-sound familiar? and comparative valuation (this is why Elmer and Mike have been busy for months sifting through the BFS's of other major projects of similar design, economics and scale).

Lastly they will interpret those results.

I am posting this to allow people to see how the bid boys look at this and more importantly how Elmer, Mike and EE want this oriented. Those insiders are our insurance policy for a FAIR VALUATION. Their majority ownership will petition this from Teck or a suitable buyer. In return the buyer is not getting 'potential'. They are getting bare bones scenario BIG positive cash flow when calculated under a Real Options Valuation Model. And remember that this $600 million plus annual net cash flow represents the base case scenario metal values and does not include the savings that Teck engineers, not will, but HAVE BEEN unlocking since they got the data set many moons ago. It does not reflect the upgraded inferred resource, the improved recoveries, the increase in throughput, etc etc.

MARK my WORDS 6-7 years from now, when this is a producing mine by Teck, at full capacity, and we are able to see their producing financials for the Shaft Creek deposit, your head will spin around like Linda Blair in The Exorcist ! By 10 years in, Teck will have drilled out the remaining high grade metal at depth and to the north and east. And even though they will have chewed through half the current BFS reserves, their new reserves for Shaft Creek will be even greater than today. That is how these guys operate. That is what they look at. They want deposits with well correlated potential that they can just keep on “proving Up”.

Teck is happy with the BFS because they already know what the inferred means. It was their own drilling ! Regulations changed since the PFS requiring spacing changes that meant 10 more holes to meet the new requirements for P&P inclusion. CUU had a discussion about this with them and they said don't worry about it. That is one of the reasons that the PFS looked so much more rosy economically. The copper didn't evaporate. They have basically maintained operating costs and kept the Capex under control while expanding the reserves, resource and enlarging the pit shell to accommodate future access to all the rest of the goodies at depth and in those north and east highly mineralized pit walls. This project has been set up for the very long term “ BIG miner.” I spoke with Elmer about this and those were his words.

On a side note, profanity is usually not in my nature. Each to their own and everyone is entitled to their opinion, regardless of how informed or uninformed their opinion might me. I just felt slighted by a post that evening. Most of us have been here contributing in some way for a few years. We do a great job I feel already of flipping the coin to check for tarnish on both sides. I just had this overwhelming sense of my mother being in the room to tell me how to run my life after having not seen or spoken with her in 20 years. Sorry mom, were doing just fine ! You get the picture.

Ldubs