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Jaguar Mining

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20082009201020112012201320142015TERMINAL

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PRODUCTION GROWTH20.00%45.00%45.00%60.00%60.00%15.00%6.00%4.00%2.00%

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SILVER PRICE (E)$875$950$1,600$2,000$2,200$2,500$2,300$2,000$1,250

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PRODUCTION 0165239383612704747776792

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COGP$420 [1]$400$375$365$386$379$371$400$500

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GROSS REVENUE$0$90,750$293,081$625,878$1,111,039$1,493,931$1,440,217$1,242,364$594,005

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EBIT$0$88,028$284,289$607,102$1,077,708$1,449,113$1,397,010$1,205,093$576,185

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EBT-$2,800$85,228$281,489$604,302$1,074,908$1,446,313$1,394,210$1,202,293$573,385

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EAT-$1,960 [2]$59,659$197,042$423,011$752,435$1,012,419$975,947$841,605$401,370

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REINVESTMENT-$500,000-$75,000-$110,000-$95,000-$125,000-$115,000-$55,000-$50,000-$55,000

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FCF-$501,960$134,659$307,042$518,011$877,435$1,127,419$1,030,947$891,605$456,370

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DISCOUNT RATE12.00% [3]

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NPV-$448,179$120,231$244,772$368,710$557,626$639,728$522,310$403,317$2,064,385

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SENSITIVITY ANALYSIS (DISCOUNT RATE & LONG TERM GOLD PRICE)

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VALUATION$62.53$1,200$1,400$1,600$1,800$2,000$2,250

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LTD70,0008.00%$96.38$109.81$123.23$136.66$150.09$166.87

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CASH+M/S200009.00%$84.02$94.81$105.60$116.39$127.18$140.66

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SHARES OUTSTANDING77,90010.00%$74.57$83.43$92.28$101.14$110.00$121.07

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VALUE OF FIRM$4,921,07911.00%$67.08$74.47$81.86$89.25$96.64$105.87

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VALUE OF EQUITY$4,871,07912.00%$60.97$67.21$73.46$79.70$85.95$93.76

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VALUE OF EQUITY PER SHARES$62.5314.00%$51.55$56.14$60.74$65.34$69.94$75.69

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THIS VALUATION DOES NOT PLACE ANY VALUE ON THE ADDITIONAL RESERVES OR RESOURCES
[1] Valued Acer Customer: CONTRACTED PRICE
[2] Valued Acer Customer: SLW CURRENTLY DOES NOT PAY INCOME TAX, BUT I ASSUMED A 3% RATE FOR THE HELL OF IT
[3] Valued Acer Customer: ROYALTY COMPANY TAKES OUT SUBSTANCIAL MINIING RISK