Graphite Industry In-Situ Valuation Report

Understanding the value of an asset is a fundamental requirement in the decision-making process for professionals in any industry.

This is true for a variety of purposes from approving capital allocation and financing of a project, negotiating the sale or purchase of an asset, or assessing the risk of impairment for financial reporting purposes.

The simplest way to understand the value of an asset is to compare it to a similar asset with a known value. This is referred to as the Market Comparative Valuation Approach or the Market Approach. Millions of residential properties are valued this way every day. This is also the way that the second-hand car market operates, and the way that many other assets change hands.

In the context of the minerals industry, this methodology is greatly restricted by the lack of access to the relevant mineral asset data that enables the approach. Due to the relatively low volume of transactions, the complexities involved with considering the confidence levels of in-situ Mineral

Resources, and the comparability of assets, additional analysis of the data is required to yield meaningful results.

The Graphite Industry In-Situ Resource Valuation Report was designed to address this problem for the graphite industry and includes the following mineral asset data:

• Analysis of 36 graphite mineral assets (the Global Dataset) owned by publicly traded companies. The analysis is presented as dollar-per-tonne contained graphitic carbon (USD/tonne) value distribution curves for the Inferred and Indicated and Measured resource categories.
• Analysis of 27 publicly traded companies that own or operate graphite assets. The analysis includes a comparison of the USD/tonne insitu value of each company’s mineral assets to the Global Dataset.
• Analysis of the Global Dataset based on the Development Stage of the mineral assets

This Graphite Industry In-Situ Valuation Report is designed to assist any person that needs to evaluate the in-situ value of graphite assets or projects. This report can be used to benchmark asset valuations, inform value expectations, identify over- or under-valued graphite mining stocks, assess past or proposed transactions, or estimate impairment risk.

This report will add value to professionals in the graphite industry, including Investment Advisory Services, Corporate Finance, Transaction Advisory Services and Audit Services. From the information provided, the value of any graphite mineral asset can be quickly and accurately determined based on the estimated in-situ graphite Mineral Resources.

The report covers the following topics:

• Fundamental Premise: The report commences with a discussion on the fundamentals that drive the value of a mining or exploration company.
• Valuation Methodologies: The valuation methodologies are detailed as prescribed by global regulatory codes. This section also highlights the limitations of these methodologies and provides context on how the datasets provided in this report can overcome the current limitations faced when using the Market Approach for the valuation of mineral assets.
• Market Comparative Dataset: This section walks through the process of data gathering, Quality Assurance and Quality Control, data processing as well as the validation of the processed results. It also summarises the Global Dataset, a comprehensive dataset compiled by the publisher, containing 36 assets held by 27 companies. The data is provided in the form of in-situ United States Dollar per contained graphitic carbon tonne (USD/tonne) distribution curves for each Mineral Resource category. Mineral assets are further grouped by their development stage and jurisdiction to simplify the identification of the appropriate value ranges for a mineral asset. The distribution curves for these regions are related to the Global Dataset to provide a regional and global perspective.
• Using the Datasets: Simple examples of the applications of the datasets are discussed.
• Company Analysis: This section provides key insights into the graphite assets of each of the 27 companies in this report. This includes what percentage of their in-situ Mineral Resources are graphite resources, the proportion of each Mineral Resource category, their development stages, their share price over the last 6 months, as well as graphical illustrations of the company assets on the USD/tonne in-situ value distribution curves compared to the Global Dataset.
• The Appendices to this report provide the tables and graphs from the Dataset. Appendix 1 is a table of the Global Dataset, including each project’s attributable Mineral Resources and in-situ resource value ranges. Appendix 2 shows the Value Distribution Graphs for the Global Dataset.