According to Jennings Capital:

February 19, 2013

PERMIT TROUBLE FROM LEFT FIELD, BUT FOCUS IS ON THE ROYALTY PORTFOLIO

- Golden Predator (Americas Bullion Royalty Corp.) announced this morning that it is effectively placing its Brewery Creek asset on care and maintenance due to a Yukon permitting decision. This has no impact on our valuation of the Company’s core focus, the royalty portfolio.

- The Yukon Environment & Socio Economic Assessment Board (YESAB) determined that its Designated Office (DO) has no jurisdiction to assess the project proposal and has handed permitting consideration to the
Executive Committee which we expect could delay permitting by at least two years.

- We are surprised by the permitting decision and expect management to pursue a judicial review with the Yukon courts given that 1) larger projects in the Yukon were approved under the DO, 2) the First Nation, Tr’ondek Hwech’in (TH) appeared fully supportive of the project, and 3) Brewery Creek is a past producing asset with existing permits.

- Brewery Creek previously accounted for 22% of our NAV; however, we have delayed production by two years in our model and have revised our NAV multiple to 0.2x from 0.5x. This effectively ascribes a $10 million valuation to Brewery Creek or 9% of our NAV.

- Focus is now fully on the royalty portfolio with Brewery Creek effectively on care and maintenance, albeit with some permit advancement planned. Management does not expect to proceed with the previously announced spin-out and as a result, the Yukon assets would remain a subsidiary of Americas Bullion Royalty.

- We would be buyers of Golden Predator on any significant weakness given that the Company’s core assets are unaffected. Our DCF implies a value for the royalty portfolio of $85 million compared to the current market cap of GPD of $48 million (intraday). We rate the common shares of Golden Predator as SPECULATIVE BUY with a revised 12-month target price of $0.55 per share (from $0.65 per share), based on a weighted average NAV multiple of 0.71x (from 0.79x) our NAVPS of $0.76.