Equity's Fair Value (US$ million)

Share's Fair Value (US$)

Share's market price (US$)
Shares Outstanding (million)
Shares Outstanding - Fully Diluted (million)
arket !apitali"ation (US$ million)
Fair Value's #ppraisal
$egotiation% ain Stock E&change
Secondary Stock E&change
'ange () *eeks (US$)
+,- !hange
Equity Research - Junior Mining
Alberto Arispe Bazn
Overweight + TREVALI MINING CORP (LSE:TV)
./012)
2!!
31).
32(14)
3021)5
3346
Halfmile & Stratmat
7SE (,V)
)51.(6
Trevali: A new prouction story
INVESTMENT RECOMMENDATION:
Santander
Ruttan, Huampar
Others
8#779# SE!U':,:ES S#; initiates Tre"ali Mi#i#$ C%r&'s (%"era$e (Tre"ali)<
recommending to %"er)ei$h* + its shares1 =e gi>e a US$ 2!! ,air "alue per share<
*hich *as o?tained taking into account only -al,.ile / S*ra*.a* mine and
Sa#*a#0er pro@ect< *hich contri?ute to ,re>aliAs >alue in US$ 212 and US$ 122
respecti>ely1 ,he US$ )144 Bair >alue is 33!4 $rea*er than its US$ 325 market
>alue as oB closing oB Fe?ruary 3st )C3)1
:n -ecem?er )C33< *e "isi*e0 -al,.ile / S*ra*.a* *hen they *ere still pro@ects in
!!"
#$"
-
%"
& #'$(
& $'(#
-
& $'$)
Contribution to Fair Value & #'**
305133
,SD (,V)
C10) - 3100
Alberto Arispe Bazn
aarispe@kallpasab.com
Telephone: 511 627-5225
Mar+a Bel,n -ega
me!a@kallpasab.com
Telephone: 511 627-522"
Char* 3 C%#*ri6u*i%# *% Fair Value -
-
A
7
-
#al$mile % &tratmat mine is Treali's main asset( and its
deelopment contributes in 77) to Treali's $air alue.
-i$hli$h*s8
,re>ali has t*o main mining units%
,he announcement oB -al,.ile's s*ar* u& %, %&era*i%#s <in Eanuary )C3)<
pro>ed anagementAs skills in taking a pro@ect in de>elopment stage into a
producing mine1 :n addition< Sa#*a#0er's s*ar* u& %, %&era*i%#s in 95 2132
represents an important sh%r* : *er. (a*al;s*1
:n -ecem?er )C33< *e "isi*e0 -al,.ile / S*ra*.a* *hen they *ere still pro@ects in
de>elopment and construction stage1 =eeks later< in Eanuary )C3)< ,re>ali
announced the e&pected s*ar* u& %, %&era*i%#s oB -al,.ile / S*ra*.a* poly-
metallic mining deposit< located in the *ell kno*n mining district oB ;athurst<
north oB $e* ;runs*ick< !anada1 !urrently< ,re>ali has ) main assets% -al,.ile /
S*ra*.a*< an ongoing mine< and Sa#*a#0er< a pro@ect in construction stage *hose
start up oB operations is estimated in 95 2132
9urchasing ,re>ali represents a le"era$e %# <i#(< a metal that *e ?elie>e *ill
sho* an interesting upside in the ne&t years as the supply Bor this metal
decreases due to the shutdo*ns oB important mines producers oB "inc *see
the section + ,ets on -inc..
-al,.ile / S*ra*.a* F !anada< a poly-metallic underground mine
currently in production G)8 ,9- (tons per day) and *illing to e&pand its
production to 28 ,9-< *ith an estimated annual a>erage production oB
300 7? Hn I () 7? 9? I 2105 7? !u I 4/48 O" #g throughout its 32
years oB liBe oB mine (7O)1
Santander F 9eru< a pro@ect in construction stage *$ully $unded. G)8 ,9-
and *illing to e&pand its production to 28 ,9-< *ith an estimated annual
production oB 32) 7? Hn I .4 7? 9? I 313 O" #g throughout its 5
years oB 7O1
==4 )C6
>4
C6 )C6 2C6 4C6 /C6 3CC6
-al,.ile / S*ra*.a* Sa#*a#0er O*r%s O*r%s
represents an important sh%r* : *er. (a*al;s*1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 2 Tre"ali's es*i.a*e0 &r%0u(*i%# -
-
Ta6le 3 Mai# &r%@e(*s
-
T%*al R
2
-
Santander
'uttan
.
Juampar
JalBmile K
Stratmat
Ongoing ine
!onstruction
E&ploration
Hn< 9?
Hn< #g
!u< Hn
S*a$e Pr%@e(*
7 L6 A#EB
3
225
3=1
>>C
,re>ali has total resources (indicated I inBerred) oB C>3 7 L6 A# EB< as sho*n
in ,a?le 31
,he de>elopment oB the pro@ects -ua.&ar (polyFmetallic) and Ru**a# (copper
and "inc)< *hich are not included into this >aluation< represent and
i#*eres*i#$ (a*al;s* Bor the Bair >alue1 :t should ?e noted that Juampar *as an
operating mine during 35(4 F 3553< processing a total oB )1(, G314 gLt #u<
3/( gLt #g< .1/6 9? and (1C6 Hn *ith a production le>el oB )(C ,9-< a le>el
that *as increased to 2CC F 3CCC ,9- in the Bollo*ing years1
!urrently< ,re>ali is carrying out a 0rilli#$ (a.&ai$# in Santander in order to
determine the si"e (depth) oB the mining site1 :n accordance *ith
anagement< the results are encouraging and it is e&pected ne* res%ur(e
es*i.a*i%#s in S2 2132
,re>ali has Ds*ra*a (JalBmile K Stratmat) and Gle#(%re (Santander) as
s*ra*e$i( &ar*#ers Bor the de>elopment oB its main de>eloped mining units1
(see the section + &trate!ic /lliance 0ith 1strata and &trate!ic /lliance 0ith
2lencore )1 =ith ?oth mining units together into production< ,re>ali *ill
?ecome a .e0iu..i#i#$ &r%0u(er *ith an annual production oB )057? Hn
I 0/ 7? 9? I 3125 O" #g< appro&imately1
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.( used
-e>elopment #g<#u<Hn 8
Me*als
C
)
2
4
/
3C
C
(C
3CC
3(C
)CC
)(C
.CC
.(C
2CC
2132 2135 213> 2132 213!
Hinc 7ead Sil>er
M L6 A#E P6 M O< A$
-
7. 8uttan is mainly a copper and -inc pro9ect.
&ource: Treali
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.( used
prices 0ere :&; 2"( :&; 2.5" and :&; ".< $or an ounce o$ siler( a
pound o$ copper and a pound o$ -inc respectiely.
2. Total resources include indicated and in$erred resources. A0"a#(es i# Sa#*a#0er- :n Fe?ruary 3st )C3)< ,re>ali pu?lished Sa#*a#0er's
u&0a*e< *hich announced that inBrastructure construction is on track and *ill
?e completed in 93 21321 :n addition< the permit Bor the mineAs construction
*ill ?e ready ?y late Fe?ruary and the En>ironmental :mpact #ssessment (E:#)
*ill ?e completed ?eBore 93 21321 Finally< it *as mentioned that the
underground mineAs construction *ill start in #pril )C3) and that the
processing plant has a 2C6 progress1
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 5 Tre"ali's &%r*,%li% 0i"ersi,i(a*i%# Pr%@e(* &%r*,%li%8
i1
ii1
iii1
ine currently in production
7ocation% 9ro>ince oB $e* ;runs*ick< !anada
etals% Hinc< lead< copper and sil>er
Operator% 8ria 'esources (3CC6 o*ned ?y ,re>ali)
&ource: Treali
Char* > 7a*hurs* Mi#i#$ Ca.& 8 S*ra*e$i( l%(a*i%# i1 JalBmile 7ake !entral (.3)13 ha)<
ii1 JalBmile 7ake South (2/(1. ha)M and<
iii1 JalBmile 7ake $orth (.C013 ha)1
JalBmile K Stratmat< a mine currently in production
Juampar and 'uttan< pro@ects in e&ploration and
3 -al,.ile Mi#e
,re>ali< unlike other mining companies< has a geographically di>ersiBied portBolio1
,re>aliAs pro@ect portBolio is composed ?y the Bollo*ing units%
Fes(ri&*i%#1- -al,.ile .i#e is a polyFmetallic ("inc< lead< copper and sil>er)
deposit Volcanic assi>e Sulphide (VS) type< located in the mining district oB
7a*hurs* Mi#i#$ Ca.& (;!)< $e* ;runs*ick F !anada1 ,he mining deposit
co>ers 3<3C21/ hectares(ha1) and it is di>ided into . minerali"ed "ones%
Santander< a pro@ect in construction stage (start up oB operations F
&ource: Treali
Ta6le 5 Res%ur(e es*i.a*i%#
Res%ur(e es*i.a*i%#s 8 -al,.ile
Te(h#i(al Re&%r* NI >58313 8 Gar0r%& (211H)
-al,.ile I 24 A# EB .ut-/00
Classi,i(a*i%# MT A$ ($J*) 7 L6 A#EB
3
:ndicated 41)
:nBerred 413
Pre"i%us eK&l%ra*i%#s a#0 res%ur(e es*i.a*i%#s1- E&ploration acti>ities
(geophysical studies< ground - soil electromagnetic studies and diamond drillings)
*ere carried out ?et*een 35(C and )CC3 ?y predecessor companies such as ,e&as
NulB< $oranda and Falcon?ridge1
iii1 JalBmile 7ake $orth (.C013 ha)1
ii) I#,erre0 res%ur(es oB 413 , G41456 Hn< 31/.6 9?< C1326 !u and
)C1(3 gLt #g Bor a total oB 351 7 L6 A# EB
i1 I#0i(a*e0 res%ur(es oB 41) , G /13.6 Hn< )1(/6 9?< C1))6 !u and
.C10/ gLt #g Bor a total oB 3=5 7 L6 A# EB
310.
31.C
.C1/
)C1(
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.(
used prices 0ere :&; 2"( :&; 2.5" and :&; ".< $or an ounce
o$ siler( a pound o$ copper and a pound o$ -inc respectiely.
EK(elle#* l%(a*i%#8 ;! district has 2( VS deposits *ith high "inc-lead grades
and it is home oB the mines ;runs*ick O 3)< ;runs*ick O 4< !ari?ou< =edge< Jeath
Steele< among others1 :t should ?e noted that the mine is located 4C kmsouth*est
oB the city oB ;athurst< 2C km Brom ;runs*ick O 3) mine F an important "inc
producer that ?elongs to Dstrata 9u?lic 7td1 (Dstrata) F < and )C km *est oB Jeath
Steele mine1 ,he pro@ect ?eneBits itselB Brom ?elonging to this *ell kno*n mining
district due to qualiBied manpo*er< de>eloped inBrastructure (*ater and energy)
and quick access to the mine *ith asphalted roads in good conditions1
A(Buisi*i%# %, Lria Res%ur(es (Lria)8 :n )CC/< Lria Res%ur(es (8ria)< ,re>aliAs
su?sidiary< signed an agreement *ith Ds*ra*a Bor the acquisition oB JalBmile K
StratmatAs mining rights1 :n accordance *ith the agreement Dstrata recei>ed i) a
US$ 3/ million paymentM and ii) ,re>aliAs common shares >alued in appro&imately
!$ 0 million1
:n Fe?ruary )CC5< 8ria pu?lished a resource estimations report in compliance *ith
!anadian classiBication standards $: 2. F 3C3< prepared ?y ,etra ,ech =ardrop
(=ardrop)1 ,he study sho*ed a cut F oBB grade oB (6 Hn Eq%
A# 4
/13
410
&ource: Treali( =ardrop *2"">.
)C1(3 gLt #g Bor a total oB 351 7 L6 A# EB
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 2 Visi* *% -al,.ile Mi#e 8 Fe( 2133
&ource: ?allpa &ecurities &/,
Char* ! 7ru#s)i(M N32 8 Fa(ili*ies
-al,.ileE a .i#e (urre#*l; i#*% &r%0u(*i%#1- :n Eanuary )C3)< ,re>ali announced
JalBmile's start up oB operations1 ,he mine operates at a le>el oB 2L TPF *ith an
annual estimated production oB 3==ML6 A# + 22ML6 P6 + >=HML6 Cu + !C!L O<
A$ at an a>erage cost (cash cost) oB US$JMT 22221 :n addition< ,re>ali announced
its plan to increase the production le>el to >L TPF in )C32 *hen incorporating
Stratmine as JalBmileAs satellite mine1
For mineral processing *ithin the Birst t*o years oB operations< 8ria *ill use
7ru#s)i(M N 32As processing plant (see the section F Strategic alliance *ith
Dstrata)< recently aBter an agreement *as accorded ?et*een ?oth parties in
Eanuary )C3)1 Jo*e>er< ,re>ali is analy"ing the possi?ility oB a(Buiri#$ a .i#eral
&r%(essi#$ &la#* in order to reduce its costs and to operate at the desired le>el oB
=ardrop ela?orated a Preli.i#ar; E(%#%.i( Assess.e#* (9E#)< pu?lished in
Octo?er )C3C< in regard *ith the de>elopment oB an underground mine and the
production oB "inc< lead and ?ulk concentrates in JalBmile1 ,he study
demonstrated that the pro@ect had an internal rate oB return (:'') oB 341)26 and a
net present >alue ($9V) oB !$ 3.5 million at a discount rate oB /61 :n addition< it
estimated a necessary capital in>estment oB !$ .)2 million and income ?eBore
ta&es oB US$ (/0 million throughout an estimated )C years oB 7O1 Finally< the
study indicated the potential in de>eloping -al,.ile / S*ra*.a* pro@ect *hich *ill
generate an :'' oB appro&imately ))61
i1
ii1
&ource: ?allpa &ecurities &/,
1strata's ,runs0ick @ 12 $acilities( located A" km $rom
#al$mile. Bn ,runs0ick @12's plant 0ill take place the
processin! o$ #al$mile's minerals $or the production o$
concentrates.
&r%(essi#$ &la#* in order to reduce its costs and to operate at the desired le>el oB
production1
For the de>elopment oB operations in -al,.ile< ,re>ali has Ds*ra*a as an strategic
partner1 ,he agreementAs most nota?le terms are%
,oll ining (ining 7ease) - :n -ecem?er )C33< Dstrata and ,re>ali signed
a )C year agreement Bor the &r%"isi%# %, *he ser"i(es %, $ri#0i#$E
&r%(essi#$ a#0 &r%0u(*i%# %, (%#(e#*ra*es ("inc< lead< copper and ?ulk)
Bor JalBmileAs minerals and the su?sequent treatment oB mining *aste in
7ru#s)i(M N 32As processing plant1 ,he plant has a processing capacity oB
3C8 ,9- and it is e&pected that it *ill end its operations (shutdo*n) in
)C32 F )C3(1 =ith ?oth units JalBmile K Stratmat< ,re>aliAs operations
*ill reach a le>el oB production oB 28 ,9-< lesser than ;runs*ick O 3)As
3C8 ,9-1
C$$-Take F ,re>ali ensured Dstrata the sale oB 3CC6 oB the concentrates
produced ?y ;runs*ick O 3)As processing plant as long as the ,oll ining
agreement is in place1
S*ra*e$i( Allia#(e )i*h Ds*ra*a8
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* = S*ra*.a* 8 EK&l%ra*i%# Ca.&
9ro@ectLJalBmileAs satellite mine
7ocation% 9ro>ince oB $e* ;runs*ick< !anada
etals% Hinc< lead< copper and sil>er
Operator% 8ria 'esources (3CC6 o*ned ?y ,re>ali)
&ource: ?allpa &ecurities &/,
Char* C -al,.ile u#0er$r%u#0 .i#e 8 E#*ra#(e
&ource: ?allpa &ecurities &/,
Fes(ri&*i%#8 S*ra*.a*E -al,.ile's sa*elli*e .i#e< is a mining VSdeposit type<
*hich is di>ided into . "ones% a) ;oundary -eposit< ?) S F 3 -eposit< and c) ain
Hone1 #s JalBmile< it is located in the *ell kno*n mining disctrict oB ;!< !anada1
:t should ?e noted that it is located appro&imately 2( km southeast oB ;athurst< ((
kmnortheast oB the city oB iramichi and only 32 M.oB JalBmile mine1 ,he mining
site co>ers /)/14 ha1
Pre"i%us eK&l%ra*i%#s a#0 res%ur(e es*i.a*i%#1- ,he mine *as e&plored ?y
Dstrata and predecessor companies (!ominco and $oranda) since the 4CAs1
9articularly during the /CAs and 5CAs< intensi>e e&ploration acti>ities *ere carried
out *hen Jeath Steele mine *as still in operations1 OB the three mining deposits<
only ;oundary -eposit has ?een e&ploitedM ho*e>er< S83 Fe&%si* represents the
highest mineral e&ploitation potential oB the entire pro@ect1
2 S*ra*.a*
:n Fe?ruary )CC5< ,re>ali pu?lished a res%ur(e es*i.a*i%# report in Stratmat< in
compliance *ith !anadian classiBication standards $: 2. F 3C3< prepared ?y
=ardrop1 ,he report sho*ed a cut F oBB grade oB (6 Hn Eq% I#,erre0 res%ur(es Bor
(1() , G41336 Hn< )1(56 9?< C126 !u and (21)3 gLt #g Bor a total oB 3>27 L6 A#
Ta6le 5 Res%ur(e es*i.a*i%#s
Res%ur(e es*i.a*i%#s 8 S*ra*.a*
Te(h#i(al Re&%r* NI >5 8 313 8 Gar0r%& (211H)
Sa#*a#0er I 54 A# EB Cu*8O,,
Class MT A# 4 P6 (4) 7 L6 A#EB
3
:nBerred
!onstruction K production stage
&ource: Treali( =ardrop *2"">. 7ocation% 9ro>ince oB Juaral< -epartment oB 7ima< 9eru
etals% Hinc< sil>er and lead
Operator% ,re>ali 9eru S1#1!1
Char* H Sa#*a#0er Ca.& 8 O"er"ie)
&ource: Treali
Fes(ri&*i%#1- Sa#*a#0er pro@ect< currently in construction stage< is a poly-metallic
mining deposit oB Darbonate 8eplacement Deposit (!'-) type1 ,he mining site is
de>eloped o>er 2<2(( ha1 located in the pro>ince oB Juaral )3( km northeast oB
7ima F 9eru< at an a>erage altitude oB 2<)CC meters a?o>e sea le>el1 Santander has
( mining deposits% i) agistral $orte< ii) agistral !entral< iii) agistral Sur< i>)
9ua@anca Sur and >) Santander 9ipe1 :t should ?e noted that Santander has good
accessi?ility and qualiBied inBrastructure (concentration K processing plants and
Ti#$% h;0r%ele(*ri( &%)er &la#*) Bor its e&pected start up oB operations in P.
)C3)1
=e must emphasi"e that the *orks currently conducted ?y ,re>ali in Santander
correspond to ne* mining deposits< 6u* #%* *% *he eK*e#si%# %, *he %l0 .i#e OB
the latter< ,re>ali *ill only reprocess mining tailings still containing "inc grades that
are attracti>e and economic Bor the production oB concentrates1
5 Sa#*a#0er &r%@e(*
3>2
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.(
used prices 0ere :&; 2"( :&; 2.5" and :&; ".< $or an ounce
o$ siler( a pound o$ copper and a pound o$ -inc respectiely.
(1() , G41336 Hn< )1(56 9?< C126 !u and (21)3 gLt #g Bor a total oB 3>27 L6 A#
EB1 :n late Octo?er )C33< ,re>ali announced an i#8,ill 0rilli#$ campaign< *hich
consists in appro&imately (8 meters oB diamantine drillings in order to impro>e the
resource category BrominBerred to indicated1 ,re>aliAs operating plan points out to
run 6%*h u#i*s -al,.ile / S*ra*.a* together in order to increase the production
le>el Brom 2L ,9- to >L ,9-1
(1( 4133 )1(5
are attracti>e and economic Bor the production oB concentrates1
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r*
?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 31 O&era*i%#s i# Sa#*a#0er
&ource: Treali
Ta6le > Res%ur(e es*i.a*i%#
Res%ur(e es*i.a*i%# 8 Sa#*a#0er
Te(h#i(al re&%r* NI >58313 8 G%l0er (2131)
Sa#*a#0er I 54 A# EB Cu*8O,,
Class MT A# 4 A$ ($J*) 7 L6 A#EB
3
:ndicated (15 .15
:nBerred 21/ (13
i) I#0i(a*e0 res%ur(es oB (15 , G .1/4 Hn< 31.(6 9?< C1C/6 !u and 22
gLt #g Bor a total oB 1H7 L6 A# EB1
A(Buisi*i%# %, Sa#*a#0er's (%#(essi%#s1- :n -ecem?er )CC0< ,re>ali< through its
su?sidiary ,re>ali 9eru S1#1!1< signed an agreement *ith inerales Santanter
S1#1!1 Bor the acquisition oB e&ploitation rights Bor a period oB (C years1
Sequentially< ,re>ali started up e&ploration acti>ities that conBirmed the depositAs
e&ploration potential< *hich is still opened Bor Buture e&tensions1
:n )C3C< ,re>ali pu?lished a technical report oB res%ur(e es*i.a*i%# in compliance
*ith !anadian classiBication standards $: 2. F 3C3< prepared ?y Nolder #ssociates1
,he study sho*ed a cut + o$$ grade oB .6 Hn Eq%
C15
C10 )31C
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.(
used prices 0ere :&; 2"( :&; 2.5" and :&; ".< $or an ounce
o$ siler( a pound o$ copper and a pound o$ -inc respectiely.
Pre"i%us eK&l%ra*i%#s a#0 res%ur(e es*i.a*i%#s1- Santander is an old mine and
"inc producer1 ,he disco>ery oB lead-"inc minerali"ation in the mining deposit
occurred in early 35CC< then sporadic e&ploration programs *ere conducted until
35(/ *hen St1 Eoe 7ead !orp1 started operations1 ,he production continued until
355)< *hen the mine closed do*n due to the Ball in the international prices oB
metals1 :t should ?e noted that during its years oB operations (35(/ F 355))< the
mining e&ploitation *as open F pit as *ell as an underground mine *ith an
a>erage le>el oB production oB 38 ,9- and an estimated total production oB / ,
G 31.; 7? Hn< C1(; 7? 9? and ( O" #g1
221C
&ource: Treali and 2older /ssociates *2"1".
Char* 33 Gle#(%re 8 R%saura &r%(essi#$ &la#*
i1
ii1
&ource: Treali
Char* 32 Sa#*a#0er 8 Ti#$% h;0r%ele(*ri( &%)er &la#*
&ource: Treali
ii) I#,erre0 res%ur(es oB 21/ , G (1C/6 Hn< C1226 9?< C1C06 !u and )3
gLt #g Bor a total oB 1=7 L6 A# EB1
7ease-illing plant% ,re>ali agreed *ith Nlencore to &ur(hase i# a0"a#(e
3CC6 oB the processing plant G)8 ,9- Bor the production oB Hn< 9? K #g
and !u K #g concentrates1 ,hus< ,re>ali *ill pay appro&imately US$ 3(
million in the rate oB 41CC US$L, processed< and su?@ect to the start up
oB operations in Santander1
OBB-,ake #greement% ,re>ali assured Nlencore the sale oB 3CC6 oB the
concentrates produced in the processing plant throughout the 7O at
market prices1
S*ra*e$i( Allia#(e )i*h Gle#(%re1- For the de>elopment oB operations in
Sa#*a#0er< ,re>ali has Gle#(%re as its strategic partner1 ,he most nota?le terms in
the t*o agreements signed are%
gLt #g Bor a total oB 1H7 L6 A# EB1
Ti#$% h;0r%ele(*ri( &%)er &la#* : Sa#*a#0er1- ,ingo hydroelectric po*er plant<
located 30 km southeast oB Santander is operated ?y ,re>ali 'ene*a?le Energy<
,re>aliAs su?sidiary1 ,he po*er plant &r%"i0es e#er$; since 35(/ and it is e&pected
that the po*er plant *ill pro>ide Santander mine *ith economic and relia?le
po*er1 !urrently< ,re>ali is de>eloping an e&tension oB the po*er plantAs capacity
Brom 314 = to appro&imately 3C =1 :t is estimated that Santander *ill require
energy Bor appro&imately 2 F ( =< so ,re>ali plans to sell po*er surpluses to
third parties in order to generate potential cash Blo*s1 ,he eBBect oB a potential
income Bromenergy sales to third parties has not ?een included into this >aluation
report1
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 35 -ua.&ar Ca.&
E&ploration stage
7ocation% 9erQ
etals% Nold< sil>er and "inc
Operator% ,re>ali 9eru S1#1!1
&ource: Treali
> -ua.&ar
i) ,o construct a Smelting plant1
ii) ,o carry out JuamparAs mineral processing at SantanderAs Bacilities<
gi>en the pro&imity oB ?oth pro@ects (/C km)
Fes(ri&*i%#1- -ua.&ar mining pro@ect includes a poly F metallic deposit (gold<
sil>er and "inc) located in the southern "one oB the poly F metallic ?elt oB central
9eru< /C kmnortheast oB 7ima and C1 M.south oB Santander mine1 ,he mining site
is de>eloped o>er 2. mining concessions co>ering a total oB 3<2(C ha1
anagement has announced that the ne&t pro@ect in line to start up operations is
Juampar1 For this purpose< anagement has outlined ) possi?le scenarios%
A(Buisi*i%# %, -ua.&ar's (%#(essi%#1- :n )C33< ,re>ali signed a emorandum oB
Understanding (OU) *ith $ue>a !ondor :nc1 ($!:) *ith a >alidity oB 2 years and
according a purchase option Bor 3CC6 oB the mineAs rights1 :n accordance *ith the
agreed terms< $!: *ill recei>e% i) a US$ (C thousand payment *hen signing the agreed terms< $!: *ill recei>e% i) a US$ (C thousand payment *hen signing the
agreement< ii) one million ,re>aliAs shares *hen e&ecuting the purchase option< iii)
.6 $et Smelter re>enue ($S') per yearM and i>) US$ 3CC thousand per year1
Pre"i%us eK&l%ra*i%#s a#0 res%ur(e es*i.a*i%#s1- Juampar is an %l0 .i#e1 ,he
e&ploitation oB se>eral poly F metallic >eins (Finlandia< !ondor 9asa< etc1) *ere
carried out ?et*een 35(4 and 3553 *hen lack oB energy Borced the mineAs
shutdo*n1 -uring this period the mine processed a total oB )1( , G 314 gLt #u<
3/( gLt #g< .1/6 9? and (1C6 Hn at a production le>el oB )(C ,9-1 ,he mine
continued its operations sporadically ?et*een 3550 and )CCC at a production le>el
oB 2CC ,9- and ad>anced Beasi?ility studies increased its production to /CC F 3CCC
,9-1 ,he mine operations ceased in )CCC due to a lack oB de>elopment and to the
lo* prices oB commodities1 :t should ?e noted that the mineAs e&isting
inBrastructure is *ell maintained and it includes a mining camp Bor 4CC people1
:n $o>em?er )C33< ,re>ali announced that all the mineAs le>els are characteri"ed
on ha>ing e&cellent minerali"ed ?odies and that the minerali"ation intensity oB
?ase and precious metals suggests the e&istence oB an e&cellent e&ploration
potential1 !urrently< ,re>ali has decided to prioriti"e the drilling o?@ecti>es as part
oB a program oB e&pansion and conBirmation oB Buture resources1
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Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Char* 3> Ru**a#E Ma#i*%6a 8 Ca#a0a
!onstruction stage
7ocation% 9ro>ince oB anito?a< !anada
etals% !opper< "inc
Operator% 8ria 'esources
&ource: Treali
Ta6le 2 Res%ur(e es*i.a*i%#
Res%ur(e es*i.a*i%# 8 Ru**a#
Te(h#i(al Re&%r* NI >58313 8 Gar0r%& (211C)
Ru**a# I 34 Cu EB Cu*8O,,
Class MT Cu 4 A# 4 7 L6 A#EB
3
:nBerred )C
&ource: Treali and =ardrop *2""<.
2 Ru**a#
1. For the calculation o$ -inc e3uialent pounds *4b 5n 63.(
used prices 0ere :&; 2"( :&; 2.5" and :&; ".< $or an ounce
o$ siler( a pound o$ copper and a pound o$ -inc respectiely.
)1). 3120 3130
Fes(ri&*i%#1- Ru**a# pro@ect is a mining deposit oB the type VS *ith a copper F
"inc e&ploitation potential1 ,he mining site is located appro&imately )3 km Brom
7eaB 'apids >illage< in the northeast oB the pro>ince oB anito?a< !anada and it
co>ers a total oB 3<552 ha1 'uttan mine *as disco>ered in 354/ and it *as
operated ?et*een 350. and )CC) ?y Sherritt Nordon ines 7td1 (350. F 35/0) and
?y Judson ;ay ining and Smelting 7td1 (35// F )CC))1 :t is estimated that during
this period (350. F )CC)) the total production *as (( , G 31).6 !u and 31236
Hn1
A(Buisi*i%# %, Ru**a#- ,re>ali has the option oB acquiring 3CC6 oB 'uttan Bor 26
$S'1 :n addition< ,re>ali can acquire )6 $S' Bor US$ .1( million1
Res%ur(e es*i.a*i%#1- :n )CC/< ,re>ali pu?lished the technical report Bor 'uttan in
compliance *ith !anadian classiBication standars $: 2. F 3C3< prepared ?y
=ardrop1 ,he report sho*ed a cut F oBB grade oB 36 !u Eq% inBerred resources Bor
3510( , G 31206 Hn and 31306 !u Bor a total oB 2257 L6 A# EB1 3510( , G 31206 Hn and 31306 !u Bor a total oB 2257 L6 A# EB1
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
,he Operations in -al,.ile underground mine started in Eanuary )C3) *ith a production le>el oB 2L TPF< *hich *ill increase
to >L TPF *hen incorporating StratmatAs resources into the mining plan1 ,he Birst t*o yearsA mineral processing< 31)/ ,<
*ill ?e carried out throughout DtrataAs 7ru#s)i(M N 32 plant (see + &trate!ic /lliance 0ith 1strata )1 Jo*e>er< *ith the
increase in the mining le>el and aBter ;runs*ick O 3)As shutdo*n< in order to process the remaining 3213/ ,< *e assume
the acquisition oB one oB the ad@acent processing plants Bor the production oB concentrates< plants such as Jeath Steel and
!ari?ou among others1 ,he modelAs main assumptions are descri?ed ?elo*1
,re>aliAs ,air "alue is o?tained using res%ur(e es*i.a*i%# in compliance *ith !anadian requirements $: 2. F 3C3 and data pro>ided
?y anagement1 #s pre>iously mentioned< oB ,re>aliAs mining units only JalBmile K Stratmat and Santander are su?@ect to ?e >alued
using the proposed methodologies1 ,hus< the equity >alue is composed only ?y i) JalBmile K StratmatAs -iscounted !ash Flo* (-!F)
>aluation< ii) SantanderAs -!F >aluation< andM iii) :n Situ >aluation oB those resources Brom JalBmile K Stratmat as *ell as Brom
Santander that are not included in the mining plan (and >alued as :n Situ resources)1
i -al,.ile / S*ra*.a*'s "alua*i%#
=e >alue -al,.ile / S*ra*.a*As total resources using the -!F methodology as *ell as the :n Situ methodology1 ,hus< Brom a total oB
301/0 , oB e&isting resources< *e >alue%
/. 15.A7 ET @ 7.57) 5n( 2.75) Fb( ".22) Du y A" !Gt /! $or a total o$ 1'22B 3b 4n Eq ( included in the Einin! Flan *DDF..
,. 2.A"ET @ 6.11) 5n( 2.5>) Fb( ".A") Du y 5A.21 !Gt /! $or a total o$ $'*%B 3b 4n Eq ( as resources *Bn &itu..
A -al,.ile / S*ra*.a*'s "alua*i%# (FCF) 8 US$ 2H1 .illi%#
Tre"ali : Valua*i%#
)5C1C3
251CC6
/(1CC6
300120
()1C(
4/4103
2105
((1)(
)((1CC
3(120
01(06
)1.(6
2C1CC
C1/C
)8 ,9-
28 ,9-
5C1CC6
/(1CC6
JalBmile K Stratmat
Operator
Start up oB operations
7iBe oB mine (7O)
#>erage Hn grade
#>erage 9? grade
#nnual a>erage 9? prodution ( 7?)
-al,.ile / S*ra*.a*'s Valua*i%# (US$ .illi%#)
9roduction le>el - ,oll illing
9lant capacity
#>erage #g grade (gLt)
ineral - ining plan (,)
#>erage 9? reco>ery
#>erage #g reco>ery
,otal !#9ED
3L
(US$ million)
#nnual a>erage #g prodution (8 O")
Hinc price - 7ong term (US$L7?)
#>erage Hn reco>ery
Underground ine
,re>ali - 8ria
P3 - )C3)
32 years
Hn< 9?-#g< !u-#g
Ta6le ! -al,.ile / S*ra*.a* .i#e: Mai# assu.&*i%#s
!ash !ost (US$ L ,)
#nnual a>erage Hn prodution ( 7?)
#>erage !u reco>ery
#nnual a>erage !u prodution ( 7?)
!oncentrates
7ead price - 7ong term (US$L7?)
!opper price - 7ong term (US$L7?)
Sil>er price - 7ong term (US$LO")
C1/C
)1(C
)C1CC
&ource: ?allpa &ecurities &/,
)5C1C3 -al,.ile / S*ra*.a*'s Valua*i%# (US$ .illi%#)
1G Bt includes the ac3uisition o$ a processin! plant @ A? TFD.
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Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Ta6le = Sa.&le %, .i#i#$ (%.&a#ies a#0 <i#( &r%0u(ers
Mai# &r%@e(*
#quila 'esources :nc1 ;ack Forty US#
;a@a ining !orp1 ;oleo 9ro@ect e&ico
!anada Hinc etals !orp1 #kia !anada
!anadian Hinc !orp1 9rairie !reek !anada
!apstone ining !orp1 !o"amin e&ico
7ithic 'esources :nc1 !rypto 9ro@ect US#
7undin ining !orp1 $er>e !orgo 9ortugal .14.
(US$ .illi%#)
2.1(/
.C01.)
0)1C2
541).
3)5/14(
.143
)5241C/
MarMe* Ca&
3
OB -al,.ile / S*ra*.a*As total resources< 301/0 ,< our assumptions include only 3(120 , *ithin the mining plan1
,hereBore< 2>1 MT remnant resources are >alued :n Situ1 For the :n Situ >aluation< it is necessary to determine the "inc
equi>alent resources to ?e >alued1 ,hus< *e >alue 1!57 L6 A# EB (corresponding to )154 , in resources :n Situ)1
C%.&a#; L%(a*i%#
Res%ur(es
(7 L6 A# EB)
.1CC 312(
:n>estors constantly >alue a company determining the price oB its shares in secondary markets1 ,hus< to o?tain the >alue
that market assigns to "inc @unior mining companies< *e o?tain the market capitali"ation oB a sample oB companies
compara?le to ,re>ali taking into account the metals they produce< the si"e oB their resources and e>en their pro@ectsA
de>elopment status1 ,his sample is detailed in ta?le 01
31..
3124
31)/
(14.
C13/
).1C(
/313(
7 -al,.ile / S*ra*.a*'s "alua*i%# (I# Si*u) : US$ H .illi%#
)1CC
).13)
215(
01()
MarMe* Ca& JL6 A#
EB (US$ (e#*s)
7undin ining !orp1 $er>e !orgo 9ortugal
Sel*yn 'esources !orp1 Sel*yn 9ro@ect !anada
Ha"u etals !orp1 7ik 9ro@ect US#
Hincore etals :nc1 +anque 9eru
31 9rices as oB closing oB Fe?ruary 3st1 )C3)1
Source% 8allpa S#;< ;loom?erg and companies
=e >alue Sa#*a#0erAs total resources using the -!F methodology as *ell as the :n Situ methodology1 ,hus< oB a total oB 3)1.) , oB
e&isting resources< *e >alue%
Finally< *e >alue JalBmile K StratmatAs remnant resources< C14.; 7? Hn G3=C CAF$JL6 Bor a total oB US$ H13 .illi%#1 :t should
?e noted that *e include an additional discount oB 214 to the >alue oB the :n Situ resources1 =ith that discount the :n Situ >alue
is 312 US$L7?1
,. >.22 ET @A.71) 5n( 1."2) Fb( "."<) Du and 75.61 !Gt /!( $or a total o$ 2'%5B 3b 4n Eq ( incorporated in the Einin! Flan
+ :nder!round mine *DDF.
/. 1.66 ET @ 2.7A) 5n( $or a total o$ $'2B 3b 4n Eq ( incorporated in the Einin! Flan - Tailin!s *DDF.
D. 1.AA ET @ A.71) 5n( 1."2) Fb( "."<) Du and 75.61 !Gt /!( $or a total o$ $'##B 3b 4n Eq ( as resources *Bn &itu.
.14.
C13)
C102
)1C)
3=C
2!5
132
01C4
3155
)5241C/
45140
()12.
2C134
A"era$e
MaKi.u.
Mi#i.u.
/313(
(41C4
ii Sa#*a#0er's "alua*i%#
www.kallpasab.c! ,re>ali ining !orp1
Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
#1
310
51C
Operator
Start up oB operations
7iBe oB mine (7O)
!oncentrates
#>erage Hn grade
9roduction le>el
Santander mine operations *ill ?e de>eloped in *)% s*a$es% i) reprocessing the old .i#i#$ *aili#$s (3144 ,)M and ii)
u#0er$r%u#0 .i#e% e&traction and production oB concentrates ("inc< lead< etc1 - 51)) ,)1 Gle#(%re< the pro@ectAs operator<
*ill start up operations in Santander in P) )C33 *ith an a>erage le>el oB 2L TPF that *ill increase to >L TPF in )C3( (see -
Strategic #lliance *ith Nlencore)1 =e assume that ,re>ali repays Nlencore 3CC6 oB the ad>ance sale in regard *ith the
acquisition oB the concentrate plant Bor US$ 32 .ili%# in )C3( and that ,re>ali carries out a US$ 32 .illi%# additional
in>estment in order to increase the production le>el Brom )8 ,9- to 28 ,9-1
Santander
Mi#i#$ *aili#$s
A Sa#*a#0er's "alua*i%# (FCF) : US$ =52 .illi%#
Ta6le C Sa#*a#0er 8 Mai# assu.&*i%#s
#>erage Hn reco>ery
!ash !ost (US$ L ,)
Nlencore
P. - )C3)
Hn
)1026
0C1CC6
.(1((
Underground mine
)1( years
ineral - ining ,ailing 9lan (,)
31(8 ,9-
#nnual a>erage Hn production ( 7?)
51C
;1
!ash !ost
3L
(US$ L ,)
,otal !#9ED
)L
(US$ )
Sa#*a#0er's Valua*i%# (US$
3L !ash cost includes the payment oB 41CC US$L, processed in regard *ith the US$ 3( million payment Bor the acquisition oB the
concentrate plant1
)L !ape& includes the costs oB the processing plant's capacity e&pansion Brom )8 ,9- to 2 ,9- Bor US$ 3( million1
.21C
2/12C
=52
)8 ,9-
28 ,9-
/)6
026
(/6
32.1C
.413
3<34/
#>erage Hn grade
#>erage 9? grade
#>erage #g grade (gLt)
#>erage Hn reco>ery
#>erage 9? reco>ery
#>erage #g reco>ery
.(14
P. - )C3)
Nlencore
Hn< 9?-#g
Santander ine
Operator
Start up oB operations
7iBe oB mine (7O)
!oncentrates
U#0er$r%u#0 Mi#e
5 years
51)
.15C6
31C)6
!ash !ost (US$ L ,)
#nnual a>erage Hn production ( 7?)
#nnual a>erage 9? production ( 7?)
#nnual a>erage #g production (8 O")
9roduction le>el ()C3) - )C32)
9roduction le>el (Brom )C3( on*ard)
Underground ine
ineral - ining plan (,)
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Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
any analysts ?et on "inc in the ne&t years aBter e&pecting that "inc supply *ill ha>e a strong contraction1 #ppro&imately 3(6 oB the
"inc supply *ould disappear as a consequence oB the shutdo*ns oB the most important "inc mines such as !entury (inmetals)<
;runs*ick (Dstrata)< 7isheen (Vedanta)< among others< mines that *ould cease to operate Brom )C321 ,his *ill cause that< ?et*een
)C3) and )C3(< appro&imately 31)5 , oB "inc *ill ?e *ithdra*n Brom the market< *hich *ill generate a deceleration in the
production oB this metal *ith an estimated increase oB only 46 in )C3) and .6 in )C3.1 =hile the contraction oB the "inc oBBer *ill
not ?e notorious in )C3) due to a lesser demand generated ?y the Binancial crisis in Euro"oneM Brom )C3.< the market *ill start to
discount the lesser production in a higher metal price1 =e are ?ullish *ith "inc1 =e ?elie>e that this *ill ?e an important catalyst Bor
,re>ali< *hich *ill ha>e t*o mines into production in )C3.% JalBmile K Stratmat and Santander1
7e*s %# <i#(8
OB SantanderAs total resources< 3)1.) ,< our assumptions include only 3C1// , *ithin the mining plan1 ,hereBore< the
3>> MT remnant resources are >alued :n Situ1 For the :n Situ >aluation< it is necessary to determine the "inc equi>alent
resources to ?e >alued1 ,hus< *e >alue 1227 L6 A# EB (corresponding to 3122 , oB resources :n Situ)1
Using the methodology pre>iously proposed< *e >alue 1227 L6 A# EB G 3=C CAF$JL6 Bor a total oB US$ 53> .illi%#1 :n
addition and as pre>iously mentioned< *e are conser>ati>e and include a 214 discount on the price oB a pound oB "inc :n
Situ1
7 Sa#*a#0er's "alua*i%# (I# Si*u) : US$ 53> .illi%#
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Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
Pr%0u(*i%# Pr%@e(*'s 0e"el%&.e#* s*a$es
#1 -al,.ile / S*ra*.a*
7ead ( 7?)
!opper ( 7?)
Sil>er (8 O")
;1 Sa#*a#0er
Hinc ( 7?)
7ead ( 7?)
Sil>er (8 O")
-al,.ile / S*ra*.a* 8 M%0el Sa#*a#0er 8 M%0el
:ncome :ncome
!ost oB sales !ost oB sales
Nross proBit Nross proBit
Operati>e e&penses Operati>e e&penses
E;:,-# E;:,-#
-epreciation -epreciation
E;:, E;:,
Res%ur(e es*i.a*i%# 8 -al,.ile Res%ur(e es*i.a*i%# 8 Sa#*a#0er
,echnical 'eport $: 2.-3C3< =ardrop ()CC5) ,echnical 'eport $: 2.-3C3< Nolder ()C3C)
)C3) )C3. )C32 )C3(
Sa#*a#0er I 54 A# EB Cu*8O,,
7 L6 7 L6
-al,.ile I 24 A# EB Cu*8O,,
)14 )14 (1) (1)
.501/ .501/ 05(14 05(14
3)/1C 3)/1C 3C(13 30/14
5413 5413 35)1. 35)1.
)/1) )/1) (412 (412
2132 2135 213>
Hinc ( 7?)
)312 )312 )312 2(13
45)1/ 45)1/ 45)1/ 3<2(/14
2132 2135 213>
551/C 3C)1// )C014C
-.(1.4 -.(1.4 -(51C5
42122 401() 32/1(3
3(102
-)15C -)15C -)15C
431(2 4214) 32(143
-231(C -2)1(C -2.1(C
)C1C2 ))13) 3C)133
(.1(( ((1.. 2514/
-)2154 -)2154 -)C142
)/1(5 .C1.4 )51C2
-)1)C -)1)C -)1)C
)41.5 )/134 )41/2
-331CC -331./ -3313C
3(1.5 34105
JalBmile
Santander
'uttan< Juampar
Pre-
Feasibility
Drilling
Deposit
Discovery
Scoping
Study
EIS
Start-up
Construc
tion
Production
Feasibility
MT A# 4 P6 4 MT A# 4 P6 4
:ndicated 310 :ndicated C15
:nBerred 31. :nBerred C10
Valua*i%# C%.&%#e#*s TV - US$ illion
Valua*i%# C%.&%#e#*s TV
Mi#eJPr%@e(* Me*h%0 Value Fis( V FJ Fis(
#1 JalBmile K Stratmat -!F
;1 JalBmile K Stratmat :n Situ
!1 Santander -!F
!1 Santander :n Situ
!1 !ash
-
-e?t Fair Value
Equity Equity's Value - US$ illion
!ash position Shares Outstanding - illion
Share's Fair Value 8 US$
arket 9rice - US$
9otential Upside - 6
Mai# Shareh%l0ers 7%ar0 a#0 Ma#a$e.e#*
)5C1C3
331.2
0.1)3
.15)
Sa#*a#0er I 54 A# EB Cu*8O,,
7 L6
A# EB A$ $J*
41. /13 )14 .C1/
413 410 31/ )C14
7 L6
A# EB
-al,.ile I 24 A# EB Cu*8O,,
Ca&i*al s*ru(*ure
Shares Outstanding - illion
Shares Fully -iluted - illion
Options Outstanding - illion
3&
3&
C1/ &
C1/ &
.1CC
.(1CC
3(1CC
32(14)
)/140
.132
3)1CC
)5C1C3
51C0
221C
215 (13 C12 )31C
./012)
32(14)
2!!
31).
3346
Neology
Finance
P%si*i%#
9resident K !EO
!hairman
!FO
-irector
-irector
-irector
Na.e
ark !ruise
,ony Joller
#nna 7add
ike JoBBman
#nton -rescher
!harles el?ye
7a(M$r%u#0
Finance
ining
Finance
ining
3021)5
(15 .15 312
A$ $J*
0.1)3
US$ .illi%#
314
>4
214
5!4
-irectorio K
Nerencia
Dstrata !anadR
FondosL:nsitucion
es
Otros
;oard K
anagement
Dstrata-!anada
:nstitutionalsL
Funds
Others
1E==2 1E3H=3
1E15C=
14 214 >14 !14 C14 3114
JalBmile K Stratmat Santander Otros Others
ining
ining
9aul 8eller
-ayle 'usk
-irector
Operations V9
E&plorations V9
9aul 8lipBel Neology
Otros Others
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Valua*i%# Re&%r* ?u#i%r Mi#i#$ 8 Tre"ali Mi#i#$ C%r&
A&&e#0iK: Fis(lai.er
Analyst6s certi0ication
This document is $or in$ormatie purposes only. :nder no circumstances it should be used G be considered as an o$$er o$ sale or an application o$
purchase o$ shares or any other securities mentioned in this document. The in$ormation herein has been obtained $rom sources 0hich are belieed
to be reliable( but ?allpa &ecurities &/, does not !uarantee the trust$ulness or accuracy o$ the content o$ this report( or the $uture market alues o$
shares or other securities mentioned in this document. The ie0s and opinions eHpressed in this document constitute our opinion at the time o$ this
The analyst that prepared this report hereby certi$ies that: i. the opinions and ie0s eHpressed in this aluation report( in re!ard 0ith the issuer and
the companyIs oerie0( re$lected hisGher personal opinion and ii. Jo part o$ hisGher salary compensation 0as( is or 0ill be related directly or
indirectly to the recommendations eHpressed in this report.
The economic compensations o$ the analyst 0ho prepared this report are based in seeral $actors( includin! but not limited to ?allpa &ecurities
&/,Is pro$itability and the pro$its !enerated by its di$$erent areas( includin! inestment bankin!. Bn addition( the analyst does not receie any kind
o$ economic compensation $rom the companies heGshe coers.
This aluation report 0as prepared by ?allpa &ecurities &/,Is employees that maintain the position o$ &enior /nalyst. Fersons inoled in the
elaboration o$ this report are authori-ed to maintain shares.
The analyst 0ho prepared this report has recently isited the pro9ectIs $acilities.
&hare prices in this report are based on market prices as o$ closin! o$ the day prior to the publication o$ this report( unless it is strictly stated.
7eneral state8ent
9e0inition o0 quali0ication ranges
shares or other securities mentioned in this document. The ie0s and opinions eHpressed in this document constitute our opinion at the time o$ this
report and are sub9ect to chan!e 0ithout any notice. ?allpa &ecurities &/, does not !uarantee analysis updates be$ore any chan!e in the
circumstances o$ the market. The products re$erred in this document may not be aailable $or purchase in some countries.
Under*eight - S - 2C6 T I 2C6 O>er*eight I
Under*eight -)C6 a -2C6 I)C6 a I2C6 O>er*eight
$eutral -)C6 a C6 I)C6 a C6 $eutral
The $undamental alue calculated by ?allpa &/, is based in one or more aluation methodolo!ies commonly used by $inancial analysts( includin!
but not limited to discounted cash $lo0s( Bn &itu aluations or any other applicable methodolo!y. Bt should be noted that the publication o$ a
$undamental alue does not imply any !uarantee that the alue 0ill be achieed.
The ran!e assi!ned to each company coered by the analyst in these reports is based on the analysisGmonitorin! ?allpa &ecurities &/, has been
deelopin! $or the company. Bn some cases( the analyst can eHpress hisGher short-term points o$ ie0 to traders( endors and some ?allpa &ecurities
&/,Is clients but this point o$ ie0 may di$$er in time by market olatility and other $actors.
?allpa &ecurities &/, has 5 3uali$ication ran!es: Cer0ei!ht K( Cer0ei!ht( Eaintainin!( :nder0ei!ht and :nder0ei!ht - . The analyst 0ill assi!n
the coera!e one o$ these ran!es.
?allpa &ecurities &/, does not maintain TrealiIs shares 0ithin its port$olio.
?allpa &ecurities &/, is sponsor o$ the company at 4ima &tock 6Hchan!eIs Lenture Dapital and receies an economic compensation $or the
per$ormin! o$ that $unction. Bn addition( ?allpa &ecurities &/, has actiely participated in the company's priate placements in the last t0o years.
?allpa &ecurities &/, has reasonably desi!ned policies to preent or to control the eHchan!e o$ non-public in$ormation used by areas such 8esearch
and Bnestment( &tock Earket( amon! others.
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