Sumitomo paid 4x to 5x the projected EBITDA (30%) based on the LT metal price at that time and at sanction decision (slide 27 below).

https://www.teck.com/media/QB2-Partnership-and-Sanctioning-Conference-Call.pdf

At current LT metal prices, SC should have an EBITDA close to $1B US per the PEA.

$1B US x 25% x (4x to 5x) = valuation of $1B US to 1.25 US at sanction decision.

If SC is 5 years away from a sanction decision, I would remove 15% per year on the valuation.

In my opinion, our carried-interest offers more protection than what Sumitomo got with Teck, which would warrant a premium.

$600M US is fair valuation for me and with the current exchange rate, that's over $800 CA or close to $1.40 CA per share fully diluted.

I would also negociate a premium if copper is above $4.50 US or something when SC is put into production.

MoneyK