Verdivurdering Nordic Rutile AS

29.12.2014 15:37

Sist oppdatert: 2017-08-20

Assumptions:

- Bank loan: 60%

- Offtake agreement: 15%

- Share issue: 25%

Cutoff @ 2%:

NORDIC RUTILE	-50%	-40%	-30%	-20%	-10%	Base case	+10%	+20%	+30%	+40%	+50%	+75%	+100%	Unit
Resource estimate (measured + indicated) cut off 2%	62	75	87	100	112	125	137	150	162	175	187	218	249	Mt
TiO2 concentration, cut off 2%	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	3,53 %	%
Yearly takeout	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	Mt
Estimated mine life	31,2	37,4	43,6	49,9	56,1	62,4	68,6	74,8	81,1	87,3	93,5	109,1	124,7	Years
Years of Open Pit mining	18	18	18	18	18	18	18	18	18	18	18	18	18	Years
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Rutile TiO2 concentration	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	%
Yearly TiO2 production	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	40 906	Tonnes

Garnet concentration (measured + indicated) @ Cut Off 2%	43,2 %	43,2 %	43,2%	43,2%	43,2%	43,2%	43,2 %	43,2 %	43,2 %	43,2 %	43,2 %	43,2 %	43,2 %	%
Yearly garnet takeout estimate, (measured + indicated) @ Cut Off 2%	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	0,86	Mt
Garnet recovery rate	34,3 %	34,3 %	34,3%	34,3%	34,3%	34,3%	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	%
Yearly Garnet production	296127	296127	296127	296127	296127	296127	296127	296127	296127	296127	296127	296127	296127	Tonnes
Percentage of garnet production: 100-180 um	26,5 %	26,5 %	26,5%	26,5%	26,5%	26,5%	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	%
Percentage of garnet production: 180-300 um	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	%
Percentage of garnet production: 300-400 um	33,5 %	33,5 %	33,5%	33,5%	33,5%	33,5%	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	%
Yearly garnet production: 100-180 um	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	78 474	Tonnes
Yearly garnet production: 180-300 um	118451	118451	118451	118451	118451	118451	118451	118451	118451	118451	118451	118451	118451	Tonnes
Yearly garnet production: 300-400 um	99 202	99 202	99202	99202	99202	99202	99 202	99 202	99 202	99 202	99 202	99 202	99 202	Tonnes

TiO2 95% market value	525	630	735	840	945	1 050	1 155	1 260	1 365	1 470	1 575	1 838	2 100	USD/T
Garnet market value - High Precision Edge	223	267	312	356	401	445	490	534	579	623	668	779	890	USD/T
Garnet market value - High Precision Edge, (Industry Standard)	75	90	105	120	135	150	165	180	195	210	225	263	300	USD/T
Garnet market value - High Speed Cutting	38	45	53	60	68	75	83	90	98	105	113	131	150	USD/T

Average garnet sales price	102	122	142	162	183	203	223	244	264	284	305	355	406	USD/T

Yearly sales income TiO2	21	26	30	34	39	43	47	52	56	60	64	75	86	MUSD
Yearly sales income garnet, all qualities	30	36	42	48	54	60	66	72	78	84	90	105	120	MUSD
Yearly sales income (TiO2 + garnet)	54,09	64,91	75,72	86,54	97,36	103	113	124	134	144	155	180	206	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	275	330	385	440	495	550	605	660	715	770	825	963	1 100	MUSD
OPEX (annual production cost), Open pit mining	11	13	16	18	20	22	25	27	29	31	34	39	45	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	485	582	679	776	873	970	1 067	1 164	1 261	1 358	1 455	1 698	1 940	USD/T
OPEX (annual production cost), Underground mining	20	24	28	32	36	40	44	48	52	56	60	69	79	MUSD

Exchange rate NOK/USD: 19.08.2017	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	NOK
Yearly profit, Open pit mining	40	48	56	64	73	81	89	97	105	113	121	141	161	MUSD
Yearly profit, Underground mining	32	38	44	51	57	63	70	76	82	89	95	111	127	MUSD
NPV	1 143	1 609	2 153	2 777	3 480	4 262	5 123	6 063	7 083	8 181	9 358	12 647	16 431	MUSD

Yearly profit, Open pit mining	313	376	439	501	564	627	689	752	815	877	940	1 097	1 254	MNOK
Yearly profit, Underground mining	247	296	345	395	444	493	542	592	641	690	740	863	986	MNOK
Total profit	3 384	5 905	9 042	12793	17159	22141	27 737	33 948	40 774	48 215	56 271	79 101	105774	MNOK

Base investment	1,10	1,32	1,54	1,76	1,98	2,20	2,42	2,64	2,86	3,08	3,30	3,85	4,40	BNOK
Percentage of Base investment with Bank financing	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	%
Offtake agreement	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	%
Share issue	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	%
Payback cost	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Total investment cost	0,92	1,11	1,29	1,48	1,66	1,85	2,03	2,22	2,40	2,59	2,77	3,23	3,70	BNOK
New shares issued (Farmout)	11,85	14,22	16,59	18,97	21,34	23,71	26,08	28,45	30,82	33,19	35,56	41,49	47,41	Mill shares
New shares total	106,68	109,05	111,42	113,79	116,16	118,53	120,90	123,27	125,64	128,01	130,39	136,31	142,24	Mill shares

Share value	83	115	150	190	233	280	330	383	438	497	558	722	898	NOK/share

Share value for P/E = 30	81	95	108	121	133	145	156	167	178	188	198	221	242	NOK/share
Share value for P/E = 25	69	81	93	104	114	124	134	143	152	161	169	189	207	NOK/share
Share value for P/E = 20	57	67	77	86	95	103	112	119	127	134	141	157	172	NOK/share
Share value for P/E = 15	46	54	62	69	76	83	89	95	101	107	113	126	138	NOK/share
Share value for P/E = 10	29	34	39	44	49	53	57	61	65	69	72	80	88	NOK/share

Cutoff @ 3%:

NORDIC RUTILE	-50%	-40%	-30%	-20%	-10%	Base case	+10%	+20%	+30%	+40%	+50%	+75%	+100%	Unit
Resource estimate (measured + indicated) cut off 3%	46	56	65	74	83	93	102	111	120	130	139	162	185	Mt
TiO2 concentration, cut off 3%	3,89 %	3,89 %	3,89%	3,89%	3,89%	3,89%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
Yearly takeout	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	2,0	Mt
Estimated mine life	23,1	27,8	32,4	37,0	41,6	46,3	50,9	55,5	60,1	64,8	69,4	80,9	92,5	Years
Years of Open Pit mining	18	18	18	18	18	18	18	18	18	18	18	18	18	Years
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Rutile TiO2 concentration	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	95 %	%
Yearly TiO2 production	44 998	44 998	44998	44998	44998	44998	44 998	44 998	44 998	44 998	44 998	44 998	44 998	Tonnes

Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7%	43,7%	43,7%	43,7%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Yearly garnet takeout estimate, (measured + indicated) @ Cut Off 3%	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	0,87	Mt
Garnet recovery rate	34,3 %	34,3 %	34,3%	34,3%	34,3%	34,3%	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	34,3 %	%
Yearly Garnet production	300071	300071	300071	300071	300071	300071	300071	300071	300071	300071	300071	300071	300071	Tonnes
Percentage of garnet production: 100-180 um	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	26,5 %	%
Percentage of garnet production: 180-300 um	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	40,0 %	%
Percentage of garnet production: 300-400 um	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	%
Yearly garnet production: 100-180 um	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	79 519	Tonnes
Yearly garnet production: 180-300 um	120028	120028	120028	120028	120028	120028	120028	120028	120028	120028	120028	120028	120028	Tonnes
Yearly garnet production: 300-400 um	100524	100524	100524	100524	100524	100524	100524	100524	100524	100524	100524	100524	100524	Tonnes

TiO2 95% market value	525	630	735	840	945	1 050	1 155	1 260	1 365	1 470	1 575	1 838	2 100	USD/T
Garnet market value - High Precision Edge	223	267	312	356	401	445	490	534	579	623	668	779	890	USD/T
Garnet market value - High Precision Edge, (Industry Standard)	75	90	105	120	135	150	165	180	195	210	225	263	300	USD/T
Garnet market value - High Speed Cutting	38	45	53	60	68	75	83	90	98	105	113	131	150	USD/T

Average garnet sales price	102	122	142	162	183	203	223	244	264	284	305	355	406	USD/T

Yearly sales income TiO2	24	28	33	38	43	47	52	57	61	66	71	83	94	MUSD
Yearly sales income garnet, all qualities	30	37	43	49	55	61	67	73	79	85	91	107	122	MUSD
Yearly sales income (TiO2 + garnet)	54	65	76	87	97	108	119	130	141	151	162	189	216	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	275	330	385	440	495	550	605	660	715	770	825	963	1 100	USD/T
OPEX (annual production cost), Open pit mining	12	15	17	20	22	25	27	30	32	35	37	43	49	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	485	582	679	776	873	970	1 067	1 164	1 261	1 358	1 455	1 698	1 940	USD/T
OPEX (annual production cost), Underground mining	22	26	31	35	39	44	48	52	57	61	65	76	87	MUSD

Exchange rate NOK/USD: 19.08.2017	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	7,78	NOK
Yearly profit, Open pit mining	42	50	58	67	75	83	92	100	108	117	125	146	167	MUSD
Yearly profit, Underground mining	32	39	45	52	58	65	71	77	84	90	97	113	129	MUSD
NPV	916	1 279	1 701	2 182	2 724	3 325	3 985	4 706	5 486	6 326	7 225	9 735	12 618	MUSD

Yearly profit, Open pit mining	324	389	454	519	584	649	714	779	844	908	973	1 136	1 298	MNOK
Yearly profit, Underground mining	251	301	351	402	452	502	552	602	652	703	753	878	1 004	MNOK
NPV	1 428	3 106	5 249	7 856	10 927	14 463	18 462	22 926	27 854	33 247	39 104	55 777	75 351	MNOK

Base investment	1,10	1,32	1,54	1,76	1,98	2,20	2,42	2,64	2,86	3,08	3,30	3,85	4,40	BNOK
Percentage of Base investment with Bank financing	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	60 %	%
Offtake agreement	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	15 %	%
Farmout	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	25 %	%
Payback cost	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Total investment cost	0,92	1,11	1,29	1,48	1,66	1,85	2,03	2,22	2,40	2,59	2,77	3,23	3,70	BNOK
New shares issued (Farmout)	11,85	14,22	16,59	18,97	21,34	23,71	26,08	28,45	30,82	33,19	35,56	41,49	47,41	Mill shares
New shares total	106,68	109,05	111,42	113,79	116,16	118,53	120,90	123,27	125,64	128,01	130,39	136,31	142,24	Mill shares

Share value	67	91	119	149	182	218	256	297	340	384	431	555	690	NOK/share

Share value for P/E = 30	83	97	111	124	137	149	161	172	183	194	204	227	249	NOK/share
Share value for P/E = 25	71	84	95	107	118	128	138	148	157	166	175	195	214	NOK/share
Share value for P/E = 20	59	70	80	89	98	107	115	123	131	139	146	163	178	NOK/share
Share value for P/E = 15	48	56	64	72	79	86	93	99	105	111	117	131	143	NOK/share
Share value for P/E = 10	30	36	41	46	50	55	59	63	67	71	75	83	91	NOK/share

Oppdatert 2016-12-16:

Major updates:

Updated number of shares after a private placement of 8 620 000 shares

Spencer Trading AS
A London based asset management fund
Alden AS
Tigerstaden AS

6 378 666 shares will be issued approx. 18.12.2016

2 241 334 shares will be issued approx. 10.01.2017

Resource variables	Mt	TiO2 %	Garnet %
TiO2 Cut off 3% (Measured) (Selected)	15	3,97 %	44,6 %
TiO2 Cut off 3% (Indicated) (Selected)	77,5	3,87 %	43,6 %
TiO2 Cut off 3% (Measured + indicated) (Selected)	92,5	3,89 %	43,7 %
TiO2 Cut off 3% (Inferred)(Selected)	138,4	3,86 %	43,5 %
TiO2 Cut off 3% measured + indicated + inferred) (Selected)	230,9	3,87 %	43,6 %
TiO2 Cut off 2% (Measured)	19	3,68 %	43,9 %
TiO2 Cut off 2% (Indicated)	105,7	3,51 %	43,0 %
TiO2 Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %
TiO2 Cut off 2% (Inferred)	254,5	3,22 %	42,5 %
TiO2 Cut off 2% measured + indicated + inferred)	379,2	3,32 %	42,7 %

Select company estimate (2011) or 2016 updated estimate	2016 est.
Select Cut off grade:	3,0 %

Other variables	Base case
Estimated mine life	50	Years
Open pit mining	15	Years
Annual payback	500	MNOK
Payback time	4,9	Years
Payback rate	1,8	-
Yearly takeout	4,0	Mt
Exchange rate USD (2011)	5,6070	NOK
Exchange rate USD 30.11.2016	8,51	NOK
Operational Cash Cost percentage in USD	14,5 %	%
Operational Cash Cost percentage in NOK	85,5 %	%
Base investment cost percentage in USD	62,90 %	%
Base investment cost percentage in NOK	37,10 %	%
Company estimated CAPEX (2011), Investment year 0: 2014	2014
Company estimated OPEX (2011), Production start up: 2016	2016
External investor project share	40 %	%
No. Of shares	92,6	Mill.
Additional share issue	0	Mill.
Inflation adjusted 2,5 % p.a. from 2013 to 2020 (7 x 2,5%)	2,50 %	%

Rutile variables	Base case
Yearly rutile production (Selected)	97500	tonnes
TiO2 recovery rate	55 %	%
TiO2 long term price	1050	USD/t

Garnet variables	Base case
Yearly garnet production, High Precision Edge	200000	tonnes
Yearly garnet production, High Precision Edge, (Industry Standard) (Selected)	0	tonnes
Yearly garnet production, High Speed Cutting (Selected)	0	tonnes
Garnet grain size range	100-400	um
Garnet recovery rate (Selected)	38 %	%
Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	27	Mt
Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40	Mt
Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	34	Mt
Garnet market value - High Precision Edge	445	USD/t
Garnet market value - High Precision Edge, (Industry Standard)	150	USD/t
Garnet market value - High Speed Cutting	75	USD/t

Company estimated OPEX (2011), Open pit mining
Company estimated OPEX (2011), Open pit mining	550	USD/t
Company estimated OPEX (2011), Open pit mining incl. By-prod.	185	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in USD	80	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in NOK, rate 5,607	2637	NOK/t

Company estimated OPEX (2011), Underground mining
Company estimated OPEX (2011), Underground mining	970	USD/t
Company estimated OPEX (2011), Underground mining incl. By-prod.	550	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in USD	141	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in NOK, rate 5,607	4650	NOK/t

Company estimated CAPEX (2011)
Company estimated CAPEX (2011)	300	MUSD
Company estimated CAPEX (2011), share in USD	189	MUSD
Company estimated CAPEX (2011), CAPEX share in NOK, rate 5,607	624	MNOK

Estimated OPEX (2016), Open pit mining
Estimated OPEX (2016), Open pit mining, OPEX share in USD	80	USD/t
Estimated OPEX (2016), Open pit mining, OPEX share in NOK, rate 8,51	310	USD/t
Estimated OPEX (2016), Open pit mining	390	USD/t

Estimated OPEX (2016), Underground mining
Estimated OPEX (2016), Underground mining, OPEX share in USD	141	USD/t
Estimated OPEX (2016), Underground mining, OPEX share in NOK, rate 8,51	546	USD/t
Estimated OPEX (2016), Underground mining	687	USD/t

Estimated CAPEX (2016)
Estimated CAPEX (2016), share in USD	189	MUSD
Estimated CAPEX (2016), CAPEX share in NOK, rate 8,51	73	MUSD
Estimated CAPEX (2016)	262	MUSD

Estimated CAPEX (2016) inflation adjusted 2014-2018, 2,5% p.a.	27	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted 2016-2020, 2,5% p.a.	40	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted 2016-2020, 2,5% p.a.	71	USD/t

Estimated CAPEX (2016) inflation adjusted for investment year 0 = 2018 (Selected)	289	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted for production start up 2020 (Selected)	430	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted for production start up 2020 (Selected)	758	USD/t

Estimated CAPEX (2016) change	-3,6 %	%
Estimated OPEX (2016), Open pit mining change	-21,8 %	%
Estimated OPEX (2016), Underground mining change	-21,8 %	%

Garnet Water Jet qualities	micron
High Precision Edge	100-180	um
High Precision Edge, (Industry Standard)	180-300	um
High Speed Cutting	300-400	um

CAPEX and OPEX; 2,5% inflation adjusted p.a. for startup 2020	CAPEX	OPEX 1	OPEX 2	Inflation
2011				2,50 %
2012				2,50 %
2013				2,50 %
2014	262			2,50 %
2015	269			2,50 %
2016	275	390	687	2,50 %
2017	282	399	704	2,50 %
2018	289	409	722	2,50 %
2019		420	740	2,50 %
2020		430	758	2,50 %

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO2 resource estimate (measured + indicated) @ Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO2 concentration (measured + indicated) @ Cut Off 3%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO2 resource estimate (inferred) @ Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO2 concentration (inferred) @ Cut Off 3%	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO2 total (measured + indicated + inferred) @ Cut Off 3%	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	Mt
TiO2 concentration (measured + indicated + inferred) @ Cut Off 3%	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	%

Yearly takeout	3,6	3,9	4,1	4,3	4,6	5,5	6,4	7,3	8,2	9,1	Mt
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Yearly TiO2 production	78000	82875	87750	92625	97500	117000	136500	156000	175500	195000	t

Estimated mine life	50	50	50	50	50	50	50	50	50	50	Years
Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) @ Cut Off 3%	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	Mt
Garnet concentration (inferred) @ Cut Off 3%	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) @ Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Concentration of Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	%
Concentration of Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	%
Concentration of Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	%
Garnet total (measured + indicated + inferred) @ Cut Off 3%	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	Mt
Garnet recovery rate	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	%
Yearly production Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	160689	170732	180775	190818	200861	241033	281206	321378	361550	401722	t
Yearly production Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	0	0	0	0	0	0	0	0	0	0	t
Yearly production Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t

TiO2 95% market value	1050	1050	1050	1050	1050	1050	1050	1050	1050	1050	USD/ton
Garnet market value - High Precision Edge	445	445	445	445	445	445	445	445	445	445	USD/ton
Garnet market value - High Precision Edge, (Industry Standard)	150	150	150	150	150	150	150	150	150	150	USD/ton
Garnet market value - High Speed Cutting	75	75	75	75	75	75	75	75	75	75	USD/ton

Yearly sales income TiO2	82	87	92	97	102	123	143	164	184	205	MUSD
Yearly sales income garnet, all qualities	72	76	80	85	89	107	125	143	161	179	MUSD
Yearly sales income (TiO2 + garnet)	153	163	173	182	192	230	268	307	345	384	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	430	430	430	430	430	430	430	430	430	430	USD/ton
OPEX (annual production cost), Open pit mining	33,5	35,6	37,7	39,8	41,9	50,3	58,7	67,1	75,5	83,9	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	758	758	758	758	758	758	758	758	758	758	USD/ton
OPEX (annual production cost), Underground mining	59,2	62,9	66,6	70,2	73,9	88,7	103,5	118,3	133,1	147,9	MUSD

Exchange rate USD/NOK	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	NOK/USD
Yearly profit, Open pit mining	1020	1084	1148	1211	1275	1530	1785	2040	2295	2550	MNOK
Yearly profit, Underground mining	802	852	902	952	1003	1203	1404	1604	1805	2005	MNOK
Total profit	43,7	46,4	49,2	51,9	54,6	65,6	76,5	87,4	98,3	109,3	BNOK
Total TiO2 production @ Cut Off 3%	3,9	4,2	4,4	4,7	4,9	5,9	6,9	7,9	8,8	9,8	Mt
Total garnet production @ Cut Off 3%	8,1	8,6	9,1	9,6	10,1	12,2	14,2	16,2	18,2	20,3	Mt
TiO2 utilization	44 %	47 %	50 %	52 %	55 %	66 %	77 %	88 %	99 %	100 %	%
High Precision Edge utilization	30 %	32 %	34 %	36 %	38 %	45 %	53 %	60 %	68 %	75 %	%
High Precision Edge, (Industry Standard) utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%
High Speed Cutting utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%

Base investment	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	BNOK
Remaining yearly profit, Open pit mining	612	650	689	727	765	918	1071	1224	1377	1530	MNOK
Remaining yearly profit, Underground mining	481	511	541	571	602	722	842	962	1083	1203	MNOK
Remaining total profit	26,2	27,9	29,5	31,1	32,8	39,3	45,9	52,4	59,0	65,6	BNOK

Number of shares	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	92,6	Mill.

Payback time	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	Years

NPV	23,9	25,5	27,2	28,8	30,4	37,0	43,5	50,1	56,7	74,8	BNOK
Share value	257,9	275,6	293,3	311,0	328,7	399,5	470,3	541,1	611,9	807,8	NOK/share

Share value for P/E = 20	99,8	107,6	115,4	123,3	131,1	162,4	193,7	224,9	256,2	287,5	NOK/share
Share value for P/E = 15	73,8	80,0	86,2	92,4	98,6	123,4	148,2	173,0	197,8	222,5	NOK/share
Share value for P/E = 10	47,8	52,4	57,0	61,5	66,1	84,4	102,7	121,0	139,3	157,6	NOK/share

Major changes:

Adjusted number of shares after reverse split 6:1

Resource variables	Mt	TiO2 %	Garnet %
TiO2 Cut off 3% (Measured) (Selected)	15	3,97 %	44,6 %
TiO2 Cut off 3% (Indicated) (Selected)	77,5	3,87 %	43,6 %
TiO2 Cut off 3% (Measured + indicated) (Selected)	92,5	3,89 %	43,7 %
TiO2 Cut off 3% (Inferred)(Selected)	138,4	3,86 %	43,5 %
TiO2 Cut off 3% measured + indicated + inferred) (Selected)	230,9	3,87 %	43,6 %
TiO2 Cut off 2% (Measured)	19	3,68 %	43,9 %
TiO2 Cut off 2% (Indicated)	105,7	3,51 %	43,0 %
TiO2 Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %
TiO2 Cut off 2% (Inferred)	254,5	3,22 %	42,5 %
TiO2 Cut off 2% measured + indicated + inferred)	379,2	3,32 %	42,7 %

Select company estimate (2011) or 2016 updated estimate	2016 est.
Select Cut off grade:	3,0 %

Other variables	Base case
Estimated mine life	50	Years
Open pit mining	15	Years
Annual payback	500	MNOK
Payback time	4,9	Years
Payback rate	1,8	-
Yearly takeout	4,0	Mt
Exchange rate USD (2011)	5,6070	NOK
Exchange rate USD 30.11.2016	8,51	NOK
Operational Cash Cost percentage in USD	14,5 %	%
Operational Cash Cost percentage in NOK	85,5 %	%
Base investment cost percentage in USD	62,90 %	%
Base investment cost percentage in NOK	37,10 %	%
Company estimated CAPEX (2011), Investment year 0: 2014	2014
Company estimated OPEX (2011), Production start up: 2016	2016
External investor project share	40 %	%
No. Of shares	86,21	Mill.
Additional share issue	0	Mill.
Inflation adjusted 2,5 % p.a. from 2013 to 2020 (7 x 2,5%)	2,50 %	%

Rutile variables	Base case
Yearly rutile production (Selected)	97500	tonnes
TiO2 recovery rate	55 %	%
TiO2 long term price	1050	USD/t

Garnet variables	Base case
Yearly garnet production, High Precision Edge	200000	tonnes
Yearly garnet production, High Precision Edge, (Industry Standard) (Selected)	0	tonnes
Yearly garnet production, High Speed Cutting (Selected)	0	tonnes
Garnet grain size range	100-400	um
Garnet recovery rate (Selected)	38 %	%
Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	27	Mt
Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40	Mt
Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	34	Mt
Garnet market value - High Precision Edge	445	USD/t
Garnet market value - High Precision Edge, (Industry Standard)	150	USD/t
Garnet market value - High Speed Cutting	75	USD/t

Company estimated OPEX (2011), Open pit mining
Company estimated OPEX (2011), Open pit mining	550	USD/t
Company estimated OPEX (2011), Open pit mining incl. By-prod.	185	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in USD	80	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in NOK, rate 5,607	2637	NOK/t

Company estimated OPEX (2011), Underground mining
Company estimated OPEX (2011), Underground mining	970	USD/t
Company estimated OPEX (2011), Underground mining incl. By-prod.	550	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in USD	141	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in NOK, rate 5,607	4650	NOK/t

Company estimated CAPEX (2011)
Company estimated CAPEX (2011)	300	MUSD
Company estimated CAPEX (2011), share in USD	189	MUSD
Company estimated CAPEX (2011), CAPEX share in NOK, rate 5,607	624	MNOK

Estimated OPEX (2016), Open pit mining
Estimated OPEX (2016), Open pit mining, OPEX share in USD	80	USD/t
Estimated OPEX (2016), Open pit mining, OPEX share in NOK, rate 8,51	310	USD/t
Estimated OPEX (2016), Open pit mining	390	USD/t

Estimated OPEX (2016), Underground mining
Estimated OPEX (2016), Underground mining, OPEX share in USD	141	USD/t
Estimated OPEX (2016), Underground mining, OPEX share in NOK, rate 8,51	546	USD/t
Estimated OPEX (2016), Underground mining	687	USD/t

Estimated CAPEX (2016)
Estimated CAPEX (2016), share in USD	189	MUSD
Estimated CAPEX (2016), CAPEX share in NOK, rate 8,51	73	MUSD
Estimated CAPEX (2016)	262	MUSD

Estimated CAPEX (2016) inflation adjusted 2014-2018, 2,5% p.a.	27	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted 2016-2020, 2,5% p.a.	40	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted 2016-2020, 2,5% p.a.	71	USD/t

Estimated CAPEX (2016) inflation adjusted for investment year 0 = 2018 (Selected)	289	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted for production start up 2020 (Selected)	430	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted for production start up 2020 (Selected)	758	USD/t

Estimated CAPEX (2016) change	-3,6 %	%
Estimated OPEX (2016), Open pit mining change	-21,8 %	%
Estimated OPEX (2016), Underground mining change	-21,8 %	%

Garnet Water Jet qualities	micron
High Precision Edge	100-180	um
High Precision Edge, (Industry Standard)	180-300	um
High Speed Cutting	300-400	um

CAPEX and OPEX; 2,5% inflation adjusted p.a. for startup 2020	CAPEX	OPEX 1	OPEX 2	Inflation
2011				2,50 %
2012				2,50 %
2013				2,50 %
2014	262			2,50 %
2015	269			2,50 %
2016	275	390	687	2,50 %
2017	282	399	704	2,50 %
2018	289	409	722	2,50 %
2019		420	740	2,50 %
2020		430	758	2,50 %

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO2 resource estimate (measured + indicated) @ Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO2 concentration (measured + indicated) @ Cut Off 3%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO2 resource estimate (inferred) @ Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO2 concentration (inferred) @ Cut Off 3%	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO2 total (measured + indicated + inferred) @ Cut Off 3%	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	Mt
TiO2 concentration (measured + indicated + inferred) @ Cut Off 3%	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	%

Yearly takeout	3,6	3,9	4,1	4,3	4,6	5,5	6,4	7,3	8,2	9,1	Mt
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Yearly TiO2 production	78000	82875	87750	92625	97500	117000	136500	156000	175500	195000	t

Estimated mine life	50	50	50	50	50	50	50	50	50	50	Years
Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) @ Cut Off 3%	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	Mt
Garnet concentration (inferred) @ Cut Off 3%	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) @ Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Concentration of Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	%
Concentration of Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	%
Concentration of Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	%
Garnet total (measured + indicated + inferred) @ Cut Off 3%	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	Mt
Garnet recovery rate	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	%
Yearly production Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	160689	170732	180775	190818	200861	241033	281206	321378	361550	401722	t
Yearly production Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	0	0	0	0	0	0	0	0	0	0	t
Yearly production Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t

TiO2 95% market value	1050	1050	1050	1050	1050	1050	1050	1050	1050	1050	USD/ton
Garnet market value - High Precision Edge	445	445	445	445	445	445	445	445	445	445	USD/ton
Garnet market value - High Precision Edge, (Industry Standard)	150	150	150	150	150	150	150	150	150	150	USD/ton
Garnet market value - High Speed Cutting	75	75	75	75	75	75	75	75	75	75	USD/ton

Yearly sales income TiO2	82	87	92	97	102	123	143	164	184	205	MUSD
Yearly sales income garnet, all qualities	72	76	80	85	89	107	125	143	161	179	MUSD
Yearly sales income (TiO2 + garnet)	153	163	173	182	192	230	268	307	345	384	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	430	430	430	430	430	430	430	430	430	430	USD/ton
OPEX (annual production cost), Open pit mining	33,5	35,6	37,7	39,8	41,9	50,3	58,7	67,1	75,5	83,9	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	758	758	758	758	758	758	758	758	758	758	USD/ton
OPEX (annual production cost), Underground mining	59,2	62,9	66,6	70,2	73,9	88,7	103,5	118,3	133,1	147,9	MUSD

Exchange rate USD/NOK 30.11.2016	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	NOK/USD
Yearly profit, Open pit mining	1020	1084	1148	1211	1275	1530	1785	2040	2295	2550	MNOK
Yearly profit, Underground mining	802	852	902	952	1003	1203	1404	1604	1805	2005	MNOK
Total profit	43,7	46,4	49,2	51,9	54,6	65,6	76,5	87,4	98,3	109,3	BNOK
Total TiO2 production @ Cut Off 3%	3,9	4,2	4,4	4,7	4,9	5,9	6,9	7,9	8,8	9,8	Mt
Total garnet production @ Cut Off 3%	8,1	8,6	9,1	9,6	10,1	12,2	14,2	16,2	18,2	20,3	Mt
TiO2 utilization	44 %	47 %	50 %	52 %	55 %	66 %	77 %	88 %	99 %	100 %	%
High Precision Edge utilization	30 %	32 %	34 %	36 %	38 %	45 %	53 %	60 %	68 %	75 %	%
High Precision Edge, (Industry Standard) utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%
High Speed Cutting utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%

Base investment	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	BNOK
Remaining yearly profit, Open pit mining	612	650	689	727	765	918	1071	1224	1377	1530	MNOK
Remaining yearly profit, Underground mining	481	511	541	571	602	722	842	962	1083	1203	MNOK
Remaining total profit	26,2	27,9	29,5	31,1	32,8	39,3	45,9	52,4	59,0	65,6	BNOK

Number of shares	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	86,2	Mill.

Payback time	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	Years

NPV	23,9	25,5	27,2	28,8	30,4	37,0	43,5	50,1	56,7	74,8	BNOK
Share value	277,0	296,0	315,0	334,0	353,0	429,1	505,1	581,1	657,2	867,5	NOK/share

Share value for P/E = 20	107,2	115,6	124,0	132,4	140,8	174,4	208,0	241,6	275,2	308,8	NOK/share
Share value for P/E = 15	79,3	85,9	92,6	99,2	105,9	132,5	159,1	185,8	212,4	239,0	NOK/share
Share value for P/E = 10	51,4	56,3	61,2	66,1	71,0	90,7	110,3	129,9	149,6	169,2	NOK/share

Updated: 2016-11-30:

Major changes:

Garnet recovery rate increased from 22% to 37,5% to match an outtake of 200 000 t/year as announced here
Updated USD exchange rate from 8,05 to 8,51

Resource variables	Mt	TiO2 %	Garnet %
TiO2 Cut off 3% (Measured) (Selected)	15	3,97 %	44,6 %
TiO2 Cut off 3% (Indicated) (Selected)	77,5	3,87 %	43,6 %
TiO2 Cut off 3% (Measured + indicated) (Selected)	92,5	3,89 %	43,7 %
TiO2 Cut off 3% (Inferred)(Selected)	138,4	3,86 %	43,5 %
TiO2 Cut off 3% measured + indicated + inferred) (Selected)	230,9	3,87 %	43,6 %
TiO2 Cut off 2% (Measured)	19	3,68 %	43,9 %
TiO2 Cut off 2% (Indicated)	105,7	3,51 %	43,0 %
TiO2 Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %
TiO2 Cut off 2% (Inferred)	254,5	3,22 %	42,5 %
TiO2 Cut off 2% measured + indicated + inferred)	379,2	3,32 %	42,7 %

Select company estimate (2011) or 2016 updated estimate	2016 est.
Select Cut off grade:	3,0 %

Other variables	Base case
Estimated mine life	50	Years
Open pit mining	15	Years
Annual payback	500	MNOK
Payback time	4,9	Years
Payback rate	1,8	-
Yearly takeout	4,0	Mt
Exchange rate USD (2011)	5,6070	NOK
Exchange rate USD 30.11.2016	8,51	NOK
Operational Cash Cost percentage in USD	14,5 %	%
Operational Cash Cost percentage in NOK	85,5 %	%
Base investment cost percentage in USD	62,90 %	%
Base investment cost percentage in NOK	37,10 %	%
Company estimated CAPEX (2011), Investment year 0: 2014	2014
Company estimated OPEX (2011), Production start up: 2016	2016
External investor project share	40 %	%
No. Of shares	517,2	Mill.
Additional share issue	0	Mill.
Inflation adjusted 2,5 % p.a. from 2013 to 2020 (7 x 2,5%)	2,50 %	%

Rutile variables	Base case
Yearly rutile production (Selected)	97500	tonnes
TiO2 recovery rate	55 %	%
TiO2 long term price	1050	USD/t

Garnet variables	Base case
Yearly garnet production, High Precision Edge	200000	tonnes
Yearly garnet production, High Precision Edge, (Industry Standard) (Selected)	0	tonnes
Yearly garnet production, High Speed Cutting (Selected)	0	tonnes
Garnet grain size range	100-400	um
Garnet recovery rate (Selected)	38 %	%
Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	27	Mt
Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40	Mt
Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	34	Mt
Garnet market value - High Precision Edge	445	USD/t
Garnet market value - High Precision Edge, (Industry Standard)	150	USD/t
Garnet market value - High Speed Cutting	75	USD/t

Company estimated OPEX (2011), Open pit mining
Company estimated OPEX (2011), Open pit mining	550	USD/t
Company estimated OPEX (2011), Open pit mining incl. By-prod.	185	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in USD	80	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in NOK, rate 5,607	2637	NOK/t

Company estimated OPEX (2011), Underground mining
Company estimated OPEX (2011), Underground mining	970	USD/t
Company estimated OPEX (2011), Underground mining incl. By-prod.	550	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in USD	141	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in NOK, rate 5,607	4650	NOK/t

Company estimated CAPEX (2011)
Company estimated CAPEX (2011)	300	MUSD
Company estimated CAPEX (2011), share in USD	189	MUSD
Company estimated CAPEX (2011), CAPEX share in NOK, rate 5,607	624	MNOK

Estimated OPEX (2016), Open pit mining
Estimated OPEX (2016), Open pit mining, OPEX share in USD	80	USD/t
Estimated OPEX (2016), Open pit mining, OPEX share in NOK, rate 8,51	310	USD/t
Estimated OPEX (2016), Open pit mining	390	USD/t

Estimated OPEX (2016), Underground mining
Estimated OPEX (2016), Underground mining, OPEX share in USD	141	USD/t
Estimated OPEX (2016), Underground mining, OPEX share in NOK, rate 8,51	546	USD/t
Estimated OPEX (2016), Underground mining	687	USD/t

Estimated CAPEX (2016)
Estimated CAPEX (2016), share in USD	189	MUSD
Estimated CAPEX (2016), CAPEX share in NOK, rate 8,51	73	MUSD
Estimated CAPEX (2016)	262	MUSD

Estimated CAPEX (2016) inflation adjusted 2014-2018, 2,5% p.a.	27	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted 2016-2020, 2,5% p.a.	40	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted 2016-2020, 2,5% p.a.	71	USD/t

Estimated CAPEX (2016) inflation adjusted for investment year 0 = 2018 (Selected)	289	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted for production start up 2020 (Selected)	430	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted for production start up 2020 (Selected)	758	USD/t

Estimated CAPEX (2016) change	-3,6 %	%
Estimated OPEX (2016), Open pit mining change	-21,8 %	%
Estimated OPEX (2016), Underground mining change	-21,8 %	%

Garnet Water Jet qualities	micron
High Precision Edge	100-180	um
High Precision Edge, (Industry Standard)	180-300	um
High Speed Cutting	300-400	um

CAPEX and OPEX; 2,5% inflation adjusted p.a. for startup 2020	CAPEX	OPEX 1	OPEX 2	Inflation
2011				2,50 %
2012				2,50 %
2013				2,50 %
2014	262			2,50 %
2015	269			2,50 %
2016	275	390	687	2,50 %
2017	282	399	704	2,50 %
2018	289	409	722	2,50 %
2019		420	740	2,50 %
2020		430	758	2,50 %

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO2 resource estimate (measured + indicated) @ Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO2 concentration (measured + indicated) @ Cut Off 3%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO2 resource estimate (inferred) @ Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO2 concentration (inferred) @ Cut Off 3%	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO2 total (measured + indicated + inferred) @ Cut Off 3%	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	Mt
TiO2 concentration (measured + indicated + inferred) @ Cut Off 3%	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	%

Yearly takeout	3,6	3,9	4,1	4,3	4,6	5,5	6,4	7,3	8,2	9,1	Mt
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Yearly TiO2 production	78000	82875	87750	92625	97500	117000	136500	156000	175500	195000	t

Estimated mine life	50	50	50	50	50	50	50	50	50	50	Years
Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) @ Cut Off 3%	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	Mt
Garnet concentration (inferred) @ Cut Off 3%	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) @ Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Concentration of Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	%
Concentration of Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	%
Concentration of Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	%
Garnet total (measured + indicated + inferred) @ Cut Off 3%	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	Mt
Garnet recovery rate	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	37,5 %	%
Yearly production Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	160689	170732	180775	190818	200861	241033	281206	321378	361550	401722	t
Yearly production Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	0	0	0	0	0	0	0	0	0	0	t
Yearly production Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t

TiO2 95% market value	1050	1050	1050	1050	1050	1050	1050	1050	1050	1050	USD/ton
Garnet market value - High Precision Edge	445	445	445	445	445	445	445	445	445	445	USD/ton
Garnet market value - High Precision Edge, (Industry Standard)	150	150	150	150	150	150	150	150	150	150	USD/ton
Garnet market value - High Speed Cutting	75	75	75	75	75	75	75	75	75	75	USD/ton

Yearly sales income TiO2	82	87	92	97	102	123	143	164	184	205	MUSD
Yearly sales income garnet, all qualities	72	76	80	85	89	107	125	143	161	179	MUSD
Yearly sales income (TiO2 + garnet)	153	163	173	182	192	230	268	307	345	384	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	430	430	430	430	430	430	430	430	430	430	USD/ton
OPEX (annual production cost), Open pit mining	33,5	35,6	37,7	39,8	41,9	50,3	58,7	67,1	75,5	83,9	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	758	758	758	758	758	758	758	758	758	758	USD/ton
OPEX (annual production cost), Underground mining	59,2	62,9	66,6	70,2	73,9	88,7	103,5	118,3	133,1	147,9	MUSD

Exchange rate USD/NOK 30.11.2016	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	8,51	NOK/USD
Yearly profit, Open pit mining	1020	1084	1148	1211	1275	1530	1785	2040	2295	2550	MNOK
Yearly profit, Underground mining	802	852	902	952	1003	1203	1404	1604	1805	2005	MNOK
Total profit	43,7	46,4	49,2	51,9	54,6	65,6	76,5	87,4	98,3	109,3	BNOK
Total TiO2 production @ Cut Off 3%	3,9	4,2	4,4	4,7	4,9	5,9	6,9	7,9	8,8	9,8	Mt
Total garnet production @ Cut Off 3%	8,1	8,6	9,1	9,6	10,1	12,2	14,2	16,2	18,2	20,3	Mt
TiO2 utilization	44 %	47 %	50 %	52 %	55 %	66 %	77 %	88 %	99 %	100 %	%
High Precision Edge utilization	30 %	32 %	34 %	36 %	38 %	45 %	53 %	60 %	68 %	75 %	%
High Precision Edge, (Industry Standard) utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%
High Speed Cutting utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%

Base investment	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	2,2	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	3,9	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	BNOK
Remaining yearly profit, Open pit mining	612	650	689	727	765	918	1071	1224	1377	1530	MNOK
Remaining yearly profit, Underground mining	481	511	541	571	602	722	842	962	1083	1203	MNOK
Remaining total profit	26,2	27,9	29,5	31,1	32,8	39,3	45,9	52,4	59,0	65,6	BNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.

Payback time	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	Years

NPV	23,9	25,5	27,2	28,8	30,4	37,0	43,5	50,1	56,7	74,8	BNOK
Share value	46,2	49,3	52,5	55,7	58,8	71,5	84,2	96,9	109,5	144,6	NOK/share

Share value for P/E = 20	17,9	19,3	20,7	22,1	23,5	29,1	34,7	40,3	45,9	51,5	NOK/share
Share value for P/E = 15	13,2	14,3	15,4	16,5	17,7	22,1	26,5	31,0	35,4	39,8	NOK/share
Share value for P/E = 10	8,6	9,4	10,2	11,0	11,8	15,1	18,4	21,7	24,9	28,2	NOK/share

Update 2016-09-29:

The resource estimate is updated after company update 12.09.2016. The updated resource model is compared with the 2008 model here.

Detailed report

Resource variables	Mt	TiO2 %	Garnet %
TiO2 Cut off 3% (Measured) (Selected)	15	3,97 %	44,6 %
TiO2 Cut off 3% (Indicated) (Selected)	77,5	3,87 %	43,6 %
TiO2 Cut off 3% (Measured + indicated) (Selected)	92,5	3,89 %	43,7 %
TiO2 Cut off 3% (Inferred)(Selected)	138,4	3,86 %	43,5 %
TiO2 Cut off 3% measured + indicated + inferred) (Selected)	230,9	3,87 %	43,6 %
TiO2 Cut off 2% (Measured)	19	3,68 %	43,9 %
TiO2 Cut off 2% (Indicated)	105,7	3,51 %	43,0 %
TiO2 Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %
TiO2 Cut off 2% (Inferred)	254,5	3,22 %	42,5 %
TiO2 Cut off 2% measured + indicated + inferred)	379,2	3,32 %	42,7 %

Select company estimate (2011) or 2016 updated estimate	2016 est.
Select Cut off grade:	3,0 %

Other variables	Base case
Estimated mine life	50	Years
Open pit mining	15	Years
Annual payback	500	MNOK
Payback time	4,7	Years
Payback rate	1,8	-
Yearly takeout	4,0	Mt
Exchange rate USD (2011)	5,6070	NOK
Exchange rate USD 29.09.2016	8,05	NOK
Operational Cash Cost percentage in USD	14,5 %	%
Operational Cash Cost percentage in NOK	85,5 %	%
Base investment cost percentage in USD	62,90 %	%
Base investment cost percentage in NOK	37,10 %	%
Company estimated CAPEX (2011), Investment year 0: 2014	2014
Company estimated OPEX (2011), Production start up: 2016	2016
External investor project share	40 %	%
No. Of shares	517,2	Mill.
Additional share issue	0	Mill.
Inflation adjusted 2,5 % p.a. from 2013 to 2020 (7 x 2,5%)	2,50 %	%

Rutile variables	Base case
Yearly rutile production (Selected)	97500	tonnes
TiO2 recovery rate	55 %	%
TiO2 long term price	1050	USD/t

Garnet variables	Base case
Yearly garnet production, High Precision Edge	100000	tonnes
Yearly garnet production, High Precision Edge, (Industry Standard) (Selected)		tonnes
Yearly garnet production, High Speed Cutting (Selected)		tonnes
Garnet grain size range	100-400	um
Garnet recovery rate (Selected)	22 %	%
Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	27	Mt
Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40	Mt
Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	34	Mt
Garnet market value - High Precision Edge	445	USD/t
Garnet market value - High Precision Edge, (Industry Standard)	150	USD/t
Garnet market value - High Speed Cutting	75	USD/t

Company estimated OPEX (2011), Open pit mining
Company estimated OPEX (2011), Open pit mining	550	USD/t
Company estimated OPEX (2011), Open pit mining incl. By-prod.	185	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in USD	80	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in NOK, rate 5,607	2637	NOK/t

Company estimated OPEX (2011), Underground mining
Company estimated OPEX (2011), Underground mining	970	USD/t
Company estimated OPEX (2011), Underground mining incl. By-prod.	550	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in USD	141	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in NOK, rate 5,607	4650	NOK/t

Company estimated CAPEX (2011)
Company estimated CAPEX (2011)	300	MUSD
Company estimated CAPEX (2011), share in USD	189	MUSD
Company estimated CAPEX (2011), CAPEX share in NOK, rate 5,607	624	MNOK

Estimated OPEX (2016), Open pit mining
Estimated OPEX (2016), Open pit mining, OPEX share in USD	80	USD/t
Estimated OPEX (2016), Open pit mining, OPEX share in NOK, rate 8,05	328	USD/t
Estimated OPEX (2016), Open pit mining	407	USD/t

Estimated OPEX (2016), Underground mining
Estimated OPEX (2016), Underground mining, OPEX share in USD	141	USD/t
Estimated OPEX (2016), Underground mining, OPEX share in NOK, rate 8,05	578	USD/t
Estimated OPEX (2016), Underground mining	718	USD/t

Estimated CAPEX (2016)
Estimated CAPEX (2016), share in USD	189	MUSD
Estimated CAPEX (2016), CAPEX share in NOK, rate 8,05	78	MUSD
Estimated CAPEX (2016)	266	MUSD

Estimated CAPEX (2016) inflation adjusted 2014-2018, 2,5% p.a.	28	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted 2016-2020, 2,5% p.a.	42	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted 2016-2020, 2,5% p.a.	75	USD/t

Estimated CAPEX (2016) inflation adjusted for investment year 0 = 2018 (Selected)	294	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted for production start up 2020 (Selected)	450	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted for production start up 2020 (Selected)	793	USD/t

Estimated CAPEX (2016) change	-2,0 %	%
Estimated OPEX (2016), Open pit mining change	-18,3 %	%
Estimated OPEX (2016), Underground mining change	-18,3 %	%

Garnet Water Jet qualities	micron
High Precision Edge	100-180	um
High Precision Edge, (Industry Standard)	180-300	um
High Speed Cutting	300-400	um

CAPEX and OPEX; 2,5% inflation adjusted p.a. for startup 2020	CAPEX	OPEX 1	OPEX 2	Inflation
2011				2,50 %
2012				2,50 %
2013				2,50 %
2014	266			2,50 %
2015	273			2,50 %
2016	280	407	718	2,50 %
2017	287	417	736	2,50 %
2018	294	428	755	2,50 %
2019		439	774	2,50 %
2020		450	793	2,50 %

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO2 resource estimate (measured + indicated) @ Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO2 concentration (measured + indicated) @ Cut Off 3%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO2 resource estimate (inferred) @ Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO2 concentration (inferred) @ Cut Off 3%	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO2 total (measured + indicated + inferred) @ Cut Off 3%	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	Mt
TiO2 concentration (measured + indicated + inferred) @ Cut Off 3%	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	%

Yearly takeout	3,6	3,9	4,1	4,3	4,6	5,5	6,4	7,3	8,2	9,1	Mt
TiO2 recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
Yearly TiO2 production	78000	82875	87750	92625	97500	117000	136500	156000	175500	195000	t

Estimated mine life	50	50	50	50	50	50	50	50	50	50	Years
Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) @ Cut Off 3%	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	40,5	Mt
Garnet concentration (inferred) @ Cut Off 3%	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) @ Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Concentration of Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	26,8 %	%
Concentration of Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	40,3 %	%
Concentration of Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	33,6 %	%
Garnet total (measured + indicated + inferred) @ Cut Off 3%	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	100,7	Mt
Garnet recovery rate	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	22,0 %	%
Yearly production Garnet grain size - High Precision Edge: 100-180 um (26,7 %)	94271	100163	106055	111947	117839	141406	164974	188542	212109	235677	t
Yearly production Garnet grain size - High Precision Edge, (Industry Standard): 180-300 um (40 %)	0	0	0	0	0	0	0	0	0	0	t
Yearly production Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t

TiO2 95% market value	1050	1050	1050	1050	1050	1050	1050	1050	1050	1050	USD/ton
Garnet market value - High Precision Edge	445	445	445	445	445	445	445	445	445	445	USD/ton
Garnet market value - High Precision Edge, (Industry Standard)	150	150	150	150	150	150	150	150	150	150	USD/ton
Garnet market value - High Speed Cutting	75	75	75	75	75	75	75	75	75	75	USD/ton

Yearly sales income TiO2	82	87	92	97	102	123	143	164	184	205	MUSD
Yearly sales income garnet, all qualities	42	45	47	50	52	63	73	84	94	105	MUSD
Yearly sales income (TiO2 + garnet)	124	132	139	147	155	186	217	248	279	310	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	450	450	450	450	450	450	450	450	450	450	USD/ton
OPEX (annual production cost), Open pit mining	35,1	37,3	39,4	41,6	43,8	52,6	61,4	70,1	78,9	87,7	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	793	793	793	793	793	793	793	793	793	793	USD/ton
OPEX (annual production cost), Underground mining	61,8	65,7	69,6	73,4	77,3	92,8	108,2	123,7	139,2	154,6	MUSD

Exchange rate USD/NOK 29.09.2016	8,05	8,05	8,05	8,05	8,05	8,05	8,05	8,05	8,05	8,05	NOK/USD
Yearly profit, Open pit mining	715	759	804	849	893	1072	1251	1429	1608	1787	MNOK
Yearly profit, Underground mining	499	530	562	593	624	749	874	998	1123	1248	MNOK
Total profit	28,4	30,2	31,9	33,7	35,5	42,6	49,7	56,8	63,9	71,0	BNOK
Total TiO2 production @ Cut Off 3%	3,9	4,2	4,4	4,7	4,9	5,9	6,9	7,9	8,8	9,8	Mt
Total garnet production @ Cut Off 3%	4,8	5,0	5,3	5,6	5,9	7,1	8,3	9,5	10,7	11,9	Mt
TiO2 utilization	44 %	47 %	50 %	52 %	55 %	66 %	77 %	88 %	99 %	100 %	%
High Precision Edge utilization	18 %	19 %	20 %	21 %	22 %	27 %	31 %	35 %	40 %	44 %	%
High Precision Edge, (Industry Standard) utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%
High Speed Cutting utilization	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	0 %	%

Base investment	2,1	2,1	2,1	2,1	2,1	2,1	2,1	2,1	2,1	2,1	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	3,8	3,8	3,8	3,8	3,8	3,8	3,8	3,8	3,8	3,8	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	2,3	BNOK
Remaining yearly profit, Open pit mining	429	456	482	509	536	643	750	858	965	1072	MNOK
Remaining yearly profit, Underground mining	299	318	337	356	374	449	524	599	674	749	MNOK
Remaining total profit	17,0	18,1	19,2	20,2	21,3	25,6	29,8	34,1	38,3	42,6	BNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.

Payback time	4,7	4,7	4,7	4,7	4,7	4,7	4,7	4,7	4,7	4,7	Years

NPV	14,8	15,8	16,9	18,0	19,0	23,3	27,5	31,8	36,1	51,8	BNOK
Share value	28,5	30,6	32,6	34,7	36,8	45,0	53,2	61,5	69,7	100,1	NOK/share

Share value for P/E = 20	10,9	11,9	12,8	13,8	14,8	18,6	22,4	26,3	30,1	33,9	NOK/share
Share value for P/E = 15	8,0	8,8	9,6	10,4	11,1	14,2	17,4	20,5	23,6	26,7	NOK/share
Share value for P/E = 10	5,1	5,7	6,3	6,9	7,5	9,9	12,3	14,7	17,1	19,4	NOK/share

Update 19.09.2016:

Adjusted CAPEX for investment year zero from 2014 to 2018 and OPEX for production startup from 2016 to 2020.
Added garnet qualities and assumed that grain sizes has linear representation
P/E=15 Base case increased from 5,3 to 8,1 after updated CAPEX and OPEX

Resource variables	Mt	TiO2 %	Garnet %
TiO2 Cut off 3% (Measured)	15	3,97 %	44,6 %
TiO2 Cut off 3% (Indicated)	77,5	3,87 %	43,6 %
TiO2 Cut off 3% (Measured + indicated)	92,5	3,89 %	43,7 %
TiO2 Cut off 3% (Inferred)	138,4	3,86 %	43,5 %
TiO2 Cut off 2% (Measured)	19	3,68 %	43,9 %
TiO2 Cut off 2% (Indicated)	105,7	3,51 %	43,0 %
TiO2 Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %
TiO2 Cut off 2% (Inferred)	254,5	3,22 %	42,5 %
Select Cut off grade	3,0 %

Other variables	Base case
Estimated mine life	50	Years
Open pit mining	15	Years
Annual payback	500	MNOK
Payback time	4,8	Years
Yearly rutile production	95 000	tonnes
Yearly takeout	4,0	Mt
TiO2 recovery rate	55 %	%
Yearly garnet production, High Precision Edge	100 000	tonnes
Yearly garnet production, High Precision Edge, (Industry Standard)	-	tonnes
Yearly garnet production, High Speed Cutting	-	tonnes
Garnet grain size range	100-400	um

Garnet grain size - High Precision Edge: 100-200 um (33,3 %)	33,5	Mt
Garnet grain size - High Precision Edge, (Industry Standard): 200-300 um (33,3 %)	33,5	Mt
Garnet grain size - High Speed Cutting: 300-400 um (33,3 %)	33,5	Mt
TiO2 long term price	1 000	USD/t
Garnet market value - High Precision Edge	365	USD/t
Garnet market value - High Precision Edge, (Industry Standard)	55	USD/t
Garnet market value - High Speed Cutting	25	USD/t

Exchange rate USD (2011)	5,6070	NOK
Exchange rate USD 19.09.2016	8,2855	NOK


Operational Cash Cost percentage in USD	14,5 %	%
Operational Cash Cost percentage in NOK	85,5 %	%


Company estimated OPEX (2011), Open pit mining
Company estimated OPEX (2011), Open pit mining	550	USD/t
Company estimated OPEX (2011), Open pit mining incl. By-prod.	185	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in USD	79,8	USD/t
Company estimated OPEX (2011), Open pit mining, OPEX share in NOK, rate 5,607	2 637	NOK/t


Company estimated OPEX (2011), Underground mining
Company estimated OPEX (2011), Underground mining	970	USD/t
Company estimated OPEX (2011), Underground mining incl. By-prod.	550	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in USD	140,7	USD/t
Company estimated OPEX (2011), Underground mining, OPEX share in NOK, rate 5,607	4 650	NOK/t


Base investment cost percentage in USD	62,90 %	%
Base investment cost percentage in NOK	37,10 %	%


Company estimated CAPEX (2011)
Company estimated CAPEX (2011)	300	MUSD
Company estimated CAPEX (2011), share in USD	189	MUSD
Company estimated CAPEX (2011), CAPEX share in NOK, rate 5,607	624	MNOK


Estimated OPEX (2016), Open pit mining
Estimated OPEX (2016), Open pit mining, OPEX share in USD	79,8	USD/t
Estimated OPEX (2016), Open pit mining, OPEX share in NOK, rate 8,2855	318,2	USD/t
Estimated OPEX (2016), Open pit mining	398¹	USD/t


Estimated OPEX (2016), Underground mining
Estimated OPEX (2016), Underground mining, OPEX share in USD	140,7	USD/t
Estimated OPEX (2016), Underground mining, OPEX share in NOK, rate 8,2855	561,2	USD/t
Estimated OPEX (2016), Underground mining	702²	USD/t


Estimated CAPEX (2016)
Estimated CAPEX (2016), share in USD	188,7	MUSD
Estimated CAPEX (2016), CAPEX share in NOK, rate 8,2855	75,3	MUSD
Estimated CAPEX (2016)	264³	MUSD


Company estimated CAPEX (2011), Investment year 0: 2014
Company estimated OPEX (2011), Production start up: 2016

Estimated CAPEX (2016) inflation adjusted 2014-2018, 2,5% p.a.	27,4	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted 2016-2020, 2,5% p.a.	41,3	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted 2016-2020, 2,5% p.a.	72,9	USD/t


Estimated CAPEX (2016) inflation adjusted for investment year 0 = 2018	291	MUSD
Estimated OPEX (2016), Open pit mining inflation adjusted for producion start up 2020	439	USD/t
Estimated OPEX (2016), Underground mining inflation adjusted for producion start up 2020	775	USD/t

Estimated CAPEX (2016) change	-2,9 %	%
Estimated OPEX (2016), Open pit mining change	-20,1 %	%
Estimated OPEX (2016), Underground mining change	-20,1 %	%


Payback rate	1,8	-
External investor project share	40 %	%
No. Of shares	517,2	Mill.
Additional share issue	0	Mill.


Garnet Water Jet qualities	micron
High Precision Edge	100-200	um
High Precision Edge, (Industry Standard)	200-300	um
High Speed Cutting	300-400	um

CAPEX and OPEX; 2,5% inflation adjusted p.a. for startup 2020	CAPEX (MUSD)	OPEX open pit (USD/t)	OPEX under-ground (USD/t)	Inflation p.a.
2011				2,50 %
2012				2,50 %
2013				2,50 %
2014	264³			2,50 %
2015	271			2,50 %
2016	277	398¹	702²	2,50 %
2017	284	408	719	2,50 %
2018	291	418	737	2,50 %
2019		429	756	2,50 %
2020		439	775	2,50 %

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO2 resource estimate (measured + indicated) @ Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO2 concentration (measured + indicated) @ Cut Off 3%	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO2 resource estimate (inferred) @ Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO2 concentration (inferred) @ Cut Off 3%	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO2 total (measured + indicated + inferred) @ Cut Off 3%	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	8,9	Mt
TiO2 concentration (measured + indicated + inferred) @ Cut Off 3%	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	3,87 %	%

Yearly takeout	4,0	4,0	4,0	4,0	4,0	4,0	4,0	4,0	4,0	4,0	Mt
TiO2 recovery rate	61 %	61 %	61 %	61 %	61 %	61 %	61 %	61 %	61 %	61 %	%
Yearly TiO2 production	76 000	80 750	85 500	90 250	95 000	114 000	133 000	152 000	171 000	190 000	t


Estimated mine life	50	50	50	50	50	50	50	50	50	50	Years
Garnet concentration (measured + indicated) @ Cut Off 3%	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) @ Cut Off 3%	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	Mt
Garnet concentration (inferred) @ Cut Off 3%	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) @ Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Concentration of Garnet grain size 100-200 um (33,3 %)	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	%
Concentration of Garnet grain size 200-300 um (33,3 %)	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	%
Concentration of Garnet grain size 300-400 um (33,3 %)	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	33,5 %	%
Garnet total (measured + indicated + inferred) @ Cut Off 3%	100,6	100,6	100,6	100,6	100,6	100,6	100,6	100,6	100,6	100,6	Mt
Yearly production Garnet grain size 100-200 um (33,3 %)	80000	85000	90000	95000	100000	120000	140000	160000	180000	200000	t
Yearly production Garnet grain size 200-300 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t
Yearly production Garnet grain size 300-400 um (33,3 %)	0	0	0	0	0	0	0	0	0	0	t

TiO2 95% market value	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	USD/ton
Garnet market value - High Precision Edge	365	365	365	365	365	365	365	365	365	365	USD/ton
Garnet market value - High Precision Edge, (Industry Standard)	55	55	55	55	55	55	55	55	55	55	USD/ton
Garnet market value - High Speed Cutting	25	25	25	25	25	25	25	25	25	25	USD/ton


Yearly sales income TiO2	76	81	86	90	95	114	133	152	171	190	MUSD
Yearly sales income garnet, all qualities	29	31	33	35	37	44	51	58	66	73	MUSD
Yearly sales income (TiO2 + garnet)	105	112	118	125	132	158	184	210	237	263	MUSD

Operational cost per ton TiO2 & garnet, Open pit mining	439	439	439	439	439	439	439	439	439	439	USD/ton
OPEX (annual production cost), Open pit mining	33,4	35,5	37,6	39,6	41,7	50,1	58,4	66,8	75,1	83,5	MUSD
Operational cost per ton TiO2 & garnet, Underground mining	775	775	775	775	775	775	775	775	775	775	USD/ton
OPEX (annual production cost), Underground mining	58,9	62,6	66,2	69,9	73,6	88,3	103,0	117,8	132,5	147,2	MUSD

Exchange rate USD/NOK 19.09.2016	8,29	8,29	8,29	8,29	8,29	8,29	8,29	8,29	8,29	8,29	NOK/USD
Yearly profit, Open pit mining	595	632	669	707	744	893	1041	1190	1339	1488	MNOK
Yearly profit, Underground mining	384	408	432	456	480	576	672	768	863	959	MNOK
Total profit	22,4	23,8	25,2	26,5	27,9	33,5	39,1	44,7	50,3	55,9	BNOK
Total TiO2 production @ Cut Off 3%	3,80	4,04	4,28	4,51	4,75	5,70	6,65	7,60	8,55	9,50	Mt
Total garnet production @ Cut Off 3%	4,00	4,25	4,50	4,75	5,00	6,00	7,00	8,00	9,00	10,00	Mt
TiO2 utilization	42,5 %	45,2 %	47,8 %	50,5 %	53,1 %	63,8 %	74,4 %	85,0 %	95,6 %	106,3 %	%
Garnet High Precision Edge utilization	11,9 %	12,7 %	13,4 %	14,2 %	14,9 %	17,9 %	20,9 %	23,9 %	26,9 %	29,8 %	%
Garnet High Precision Edge, (IndustryStandard) utilization	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	%
Garnet High Speed Cutting utilization	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	0,0 %	%

Base investment	2,4	2,4	2,4	2,4	2,4	2,4	2,4	2,4	2,4	2,4	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	4,2	4,2	4,2	4,2	4,2	4,2	4,2	4,2	4,2	4,2	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,5	2,5	2,5	2,5	2,5	2,5	2,5	2,5	2,5	2,5	BNOK
Remaining yearly profit, Open pit mining	357	379	402	424	446	536	625	714	803	893	MNOK
Remaining yearly profit, Underground mining	230	245	259	273	288	345	403	461	518	576	MNOK
Remaining total profit	13,4	14,3	15,1	15,9	16,8	20,1	23,5	26,8	30,2	33,5	BNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.

Payback time	4,8	4,8	4,8	4,8	4,8	4,8	4,8	4,8	4,8	4,8	Years

NPV	10,9	11,7	12,6	13,4	14,2	17,6	20,9	24,3	27,7	42,1	BNOK
Share value	21,0	22,7	24,3	25,9	27,5	34,0	40,5	47,0	53,5	81,4	NOK/share

Share value for P/E = 20	8,9	9,8	9,3	10,0	10,8	14,0	17,1	20,3	23,4	26,6	NOK/share
Share value for P/E = 15	5,5	6,1	6,8	7,4	8,1	10,6	13,2	15,8	18,4	21,0	NOK/share
Share value for P/E = 10	3,2	3,7	4,3	4,8	5,3	7,3	9,3	11,4	13,4	15,4	NOK/share

Update 13.09.2016:

Garnet recovery grade is set to 5% based on annual production of approx. 100 000 tonnes.
Only TiO₂ resource estimates @ Cut off grade 3% are included.
Mine life is set to 50 years independent of estimated resource size and annual production.
Share value based on total resource estimate increased from 18,6 NOK/share to 30,2 NOK/share because of increased resource estimate.
PE=15 decreased from 7,6 NOK/share to 5,3 NOK/share mainly because of lower USD exhange rate (8,58 -> 8,24)

Resource variables	Mt	TiO₂ %	Garnet %	TiO₂ Mt	Garnet Mt
TiO₂ Cut off 3% (Measured)	15	3,97 %	44,6 %	0,6	6,7
TiO₂ Cut off 3% (Indicated)	77,5	3,87 %	43,6 %	3,0	33,9
TiO₂ Cut off 3% (Measured + indicated)	92,5	3,89 %	43,7 %	3,6	40,4
TiO₂ Cut off 3% (Inferred)	138,4	3,86 %	43,5 %	5,3	60,2
TiO₂ Cut off 2% (Measured)	19	3,68 %	43,9 %	0,7	8,3
TiO₂ Cut off 2% (Indicated)	105,7	3,51 %	43,0 %	3,7	45,5
TiO₂ Cut off 2% (Measured + indicated)	124,7	3,53 %	43,2 %	4,4	53,9
TiO₂ Cut off 2% (Inferred)	254,5	3,22 %	42,5 %	8,2	108,2

Other variables
Estimated mine life	50	Years
Payback time	5	Years
Yearly rutile production	95000	tonnes
TiO₂ recovery rate	55 %	%
Garnet recovery rate	5 %	%
TiO₂ long term price	1000	USD/t
Garnet market value	315	USD/t
OPEX	550	USD/t
Exchange rate	8,24	NOK
Base investment cost	2,8	BNOK
Payback rate	1,8	-
External investor project share	40 %	%
No. Of shares	517,2328	Mill.
Additional share issue	0	Mill.

NORDIC RUTILE	-20%	-15%	-10%	-5%	Base case	+20%	+40%	+60%	+80%	+100%	Unit
TiO₂ resource estimate (measured + indicated) Cut Off 3%	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	92,5	Mt
TiO₂ concentration (measured + indicated) 3% Cut Off	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	3,89 %	%
TiO₂ resource estimate (inferred) Cut Off 3%	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	138,4	Mt
TiO₂ concentration (inferred) 3% Cut Off	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	3,86 %	%
TiO₂ recovery rate	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	55 %	%
TiO₂ total (measured + indicated + inferred) 3% Cut Off	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	4,9	Mt
Yearly TiO₂ production	76000	80750	85500	90250	95000	114000	133000	152000	171000	190000	t

Estimated mine life	50,0	50,0	50,0	50,0	50,0	50,0	50,0	50,0	50,0	50,0	Years

Garnet concentration (measured + indicated) 3% Cut Off	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	43,7 %	%
Garnet resource estimate, (measured + indicated) Cut Off 3%	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	40,4	Mt
Garnet concentration (inferredd) 3% Cut Off	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	43,5 %	%
Garnet resource estimate, (inferred) Cut Off 3%	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	60,2	Mt
Garnet recovery rate	5 %	5 %	5 %	5 %	5 %	5 %	5 %	5 %	5 %	5 %	%
Garnet total (measured + indicated + inferred) 3% Cut Off	5,0	5,0	5,0	5,0	5,0	5,0	5,0	5,0	5,0	5,0	Mt
Yearly garnet production	80501	85533	90564	95595	100627	120752	140877	161002	181128	201253	t

TiO₂ 95% market value	1000	1000	1000	1000	1000	1000	1000	1000	1000	1000	USD/ton
Garnet market value	315	315	315	315	315	315	315	315	315	315	USD/ton
Yearly sales (TiO₂ + garnet)	101	108	114	120	127	152	177	203	228	253	MUSD

Operational cost per ton TiO₂ & garnet	550	550	550	550	550	550	550	550	550	550	USD/ton
OPEX (annual production cost)	41,8	44,4	47,0	49,6	52,3	62,7	73,2	83,6	94,1	104,5	MUSD

Exchange rate USD/NOK	8,24	8,24	8,24	8,24	8,24	8,24	8,24	8,24	8,24	8,24	NOK/USD
Yearly profit	491	521	552	583	613	736	859	982	1104	1227	MNOK

Base investment	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	BNOK
Payback cost	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	1,8	BNOK
Total investment cost	4,6	4,6	4,6	4,6	4,6	4,6	4,6	4,6	4,6	4,6	BNOK

External investor project share	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	40 %	%
Remaining investment cost	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	2,8	BNOK
Remaining yearly profit	294	313	331	350	368	442	515	589	663	736	MNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Estimated additional share issue	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	0,0	Mill.
Total number of shares at startup	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.

Payback time	5	5	5	5	5	5	5	5	5	5	Years

NPV	12,0	12,9	13,8	14,7	15,6	19,3	23,0	26,7	30,4	34,0	BNOK
Share value	23,1	24,9	26,7	28,5	30,2	37,4	44,5	51,6	58,7	65,8	NOK

Share value for P/E = 20	6,0	6,8	7,5	8,2	8,9	11,7	14,6	17,4	20,3	23,1	NOK/share
Share value for P/E = 15	3,2	3,7	4,3	4,8	5,3	7,5	9,6	11,7	13,9	16,0	NOK/share
Share value for P/E = 10	0,4	0,7	1,1	1,4	1,8	3,2	4,6	6,0	7,5	8,9	NOK/share

Update 29.06.2016

NORDIC RUTILE	Low	Base case - 35%	Medium low	Base case - 15%	Base case	Base case + 15%	Medium high	Base case + 35%	High	Unit
Resource estimate	77,2	100,3	115,7	131,2	154,3	177,4	192,9	208,3	231,5	Mill. tonnes
Historic resource estimate	190	247	285	323	380	437	475	513	570	Mill. tonnes
Rutile concentration	2,82 %	3,10 %	3,28 %	3,47 %	3,75 %	4,04 %	4,22 %	4,41 %	4,69 %
Yearly rutile production < 95% TiO2	0	0	0	0	0	0	0	0	0	tonnes
Yearly rutile production 95% TiO2	43500	56550	65250	73950	87000	100050	108750	117450	130500	tonnes
Yearly rutile production > 95% TiO2	0	0	0	0	0	0	0	0	0	tonnes
Recovery rate	41 %	45 %	48 %	51 %	55 %	59 %	62 %	65 %	69 %
TiO2 total	0,90	1,41	1,83	2,32	3,19	4,23	5,04	5,94	7,47	Mill. tonnes
Estimated mine life	21	25	28	31	37	42	46	51	57	years

Market value < 95% TiO2	350	455	525	595	700	805	875	945	1050	USD/ton
Market value 95% TiO2	500	650	750	850	1000	1150	1250	1350	1500	USD/ton
Market value > 95% TiO2	650	845	975	1105	1300	1495	1625	1755	1950	USD/ton
Yearly market value TiO2	21,8	36,8	48,9	62,9	87,0	115,1	135,9	158,6	195,8	MUSD

Yearly granate production Quality 1	0	0	0	0	0	0	0	0	0	tonnes
Yearly granate production Quality 2	50000	65000	75000	85000	100000	115000	125000	135000	150000	tonnes
Yearly granate production Quality 3	0	0	0	0	0	0	0	0	0	tonnes
Market value granate Quality 1	113	146	169	191	225	259	281	304	338	USD/ton
Market value granate Quality 2	188	244	281	319	375	431	469	506	563	USD/ton
Market value granate Quality 3	263	341	394	446	525	604	656	709	788	USD/ton
Yearly market value Granate	9,4	15,8	21,1	27,1	37,5	49,6	58,6	68,3	84,4	MUSD

OPEX	495	545	578	611	660	710	743	776	825	USD/ton

Profit	221	386	496	606	771	936	1046	1156	1322	USD/ton
Exchange rate USD/NOK	6,44	7,08	7,51	7,94	8,58	9,22	9,65	10,08	10,73	NOK/USD
Yearly profit	62	154	243	356	576	864	1098	1369	1850	MNOK
Total profit	1,3	3,8	6,8	11,1	21,1	36,6	50,9	69,2	105,8	MRD NOK

Base investment	2,1	2,3	2,5	2,6	2,8	3,0	3,2	3,3	3,5	MRD NOK
Payback cost	135 %	149 %	158 %	167 %	180 %	194 %	203 %	212 %	225 %
Total investment cost	2,8	3,4	3,9	4,3	5,0	5,8	6,4	7,0	7,9	MRD NOK
External investor project share	30,0 %	33,0 %	35,0 %	37,0 %	40,0 %	43,0 %	45,0 %	47,0 %	50,0 %

Remaining investment cost	2,0	2,3	2,5	2,7	3,0	3,3	3,5	3,7	3,9	MRD NOK
Remaining profit	0,9	2,6	4,4	7,0	12,6	20,8	28,0	36,7	52,9	MRD NOK
NPV	-1,1	0,3	1,9	4,3	9,6	17,5	24,5	33,0	49,0	MRD NOK
Yearly NPV	-53	11	68	137	263	414	528	653	856	MNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Share value	-2,1	0,5	3,7	8,3	18,6	33,9	47,3	63,8	94,7	NOK/share
Share value based on historic estimate	-5,2	1,3	9,1	20,5	45,8	83,4	116,6	157,1	233,2	NOK/share

Share value for P/E = 20	-2,1	0,4	2,6	5,3	10,2	16,0	20,4	25,2	33,1	NOK/share
Share value for P/E = 15	-1,5	0,3	2,0	4,0	7,6	12,0	15,3	18,9	24,8	NOK/share
Share value for P/E = 10	-1,0	0,2	1,3	2,7	5,1	8,0	10,2	12,6	16,5	NOK/share

Last updated: 28.06.2016

Updated: 27.06.2016	Low	Base case - 35%	Medium low	Base case - 15%	Base case	Base case + 15%	Medium high	Base case + 35%	High	Unit
Resource estimate	77,2	100,3	115,7	131,2	154,3	177,4	192,9	208,3	231,5	Mill. tonnes
Historical resource estimate	190	247	285	323	380	437	475	513	570	Mill. tonnes
Rutile concentration	2,82 %	3,10 %	3,28 %	3,47 %	3,75 %	4,04 %	4,22 %	4,41 %	4,69 %
Yearly rutile production < 95% TiO2	0	0	0	0	0	0	0	0	0	tonnes
Yearly rutile production 95% TiO2	45000	58500	67500	76500	90000	103500	112500	121500	135000	tonnes
Yearly rutile production > 95% TiO2	0	0	0	0	0	0	0	0	0	tonnes
Recovery rate	41 %	45 %	48 %	51 %	55 %	59 %	62 %	65 %	69 %
TiO2 total	0,90	1,41	1,83	2,32	3,19	4,23	5,04	5,94	7,47	Mill. tonnes
Mine life	20	24	27	30	35	41	45	49	55	years

Market value < 95% TiO2	350	455	525	595	700	805	875	945	1050	USD/ton
Market value 95% TiO2	500	650	750	850	1000	1150	1250	1350	1500	USD/ton
Market value > 95% TiO2	650	845	975	1105	1300	1495	1625	1755	1950	USD/ton
Total market value TiO2	22,5	38,0	50,6	65,0	90	119,0	140,6	164,0	202,5	MUSD

Yearly garnet production Quality 1	0	0	0	0	0	0	0	0	0	tonnes
Yearly garnet production Quality 2	50000	65000	75000	85000	100000	115000	125000	135000	150000	tonnes
Yearly garnet production Quality 3	0	0	0	0	0	0	0	0	0	tonnes
Market value garnet Quality 1	113	146	169	191	225	259	281	304	338	USD/ton
Market value garnet Quality 2	187,5	243,75	281,25	318,75	375	431,25	468,75	506,25	562,5	USD/ton
Market value garnet Quality 3	263	341	394	446	525	604	656	709	788	USD/ton
Total market value Garnet	9,4	15,8	21,1	27,1	37,5	49,6	58,6	68,3	84,4	MUSD

OPEX	495	545	578	611	660	710	743	776	825	USD/ton

Profit	213	376	485	594	757	920	1028	1137	1300	USD/ton
USD exchange rate	6,44	7,08	7,51	7,94	8,58	9,22	9,65	10,08	10,73	NOK/USD
Yearly profit	62	156	246	360	584	878	1117	1393	1882	MNOK
Total profit	1,2	3,8	6,7	10,9	20,7	35,9	50,0	68,1	104,1	MRD NOK

Base investment	2,1	2,3	2,5	2,6	2,8	3,0	3,2	3,3	3,5	MRD NOK
Payback cost	135 %	149 %	158 %	167 %	180 %	194 %	203 %	212 %	225 %
Total investment cost	2,8	3,4	3,9	4,3	5,0	5,8	6,4	7,0	7,9	MRD NOK
External investor project share	30,0 %	33,0 %	35,0 %	37,0 %	40,0 %	43,0 %	45,0 %	47,0 %	50,0 %

Remaining investment cost	2,0	2,3	2,5	2,7	3,0	3,3	3,5	3,7	3,9	MRD NOK
Remaining profit	0,9	2,5	4,3	6,9	12,4	20,5	27,5	36,1	52,1	MRD NOK
NPV	-1,1	0,2	1,8	4,2	9,4	17,2	24,0	32,4	48,1	MRD NOK
Yearly NPV	-56	9	67	137	265	419	536	663	870	MNOK

Number of shares	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	517,2	Mill.
Share value	-2,2	0,4	3,5	8,0	18,1	33,2	46,4	62,6	93,0	NOK/share
Share value based on historical estimate	-5,3	1,0	8,7	19,8	44,7	81,7	114,3	154,2	229,1	NOK/share

P/E	12	14	16	18	20	22	24	26	28
Share value for P/E	-1,3	0,2	2,1	4,8	10,3	17,8	24,9	33,3	47,1	NOK/share

Sist oppdatert 19.06.2016

Estimatet basert på Sintef's EBITDA estimat for hhv. dagbrudds- og underjordsdrift stemmer forbløffende godt overens med estimatet "medium lav" som er grunncaset pr. i dag. EBITDA ved dagbruddsdrift: 60%, EBITDA ved underjordsdrift: 35%

"Medium lav" er grunncaset pr. idag.
"Snitt" anses som mest realistisk basert på at tidligere estimater er på 383 mill. tonn
Det er forutsatt at resterende kapital som trengs før investeringsbeslutning hentes fra salg av Keliberandeler
Det er forutsatt at en investor får 40% av prosjektet

	Lav	Medium lav	Snitt	Medium høy	Høy	Enhet
Forekomst @ 3,8%	139	154	269	383	460	mill tonn
Produksjonstid	29	36	64	92	111	år
Rutilkonsentrasjon i eklogitten	3,42 %	3,80 %	3,88 %	3,92 %	3,96 %	%
Rutilmalm totalt	4,7	5,9	10,4	15,0	18,2	mill. tonn
Utvinningsgrad	50 %	55 %	61 %	66 %	72 %	%
Årlig rutilproduksjon (95% TiO2)	81000	90000	99000	108000	117000	tonn
Årlig granatproduksjon	90000	100000	110000	120000	130000	tonn
Salgsverdi 95% TiO2	900	1000	1100	1200	1300	USD/tonn
Salgsverdi granatkonsentrat	225	300	375	450	525	USD/tonn
Break even	540	600	660	720	780	USD/tonn
Profitt pr tonn 95% TiO2	360	400	440	480	520	USD/tonn
Profitt pr tonn granatkonsentrat	225	300	375	450	525	USD/tonn
Kurs: 1 USD = 8,36 NOK	7,52	8,36	9,20	10,03	10,87	NOK/USD
Profitt i NOK pr tonn 95% TiO2	2709	3344	4046	4815	5651	NOK/tonn
Profitt i NOK pr tonn rutilkonsentrat	1693	2508	3449	4514	5706	NOK/tonn
Årlig profitt	372	552	780	1062	1403	mill. kr
Total profitt	11	20	50	97	156	mrd. kr
Minus investeringskostnader	2,3	2,5	2,8	3,0	3,3	mrd. kr
Gjenstående finansiering fram til investeringsbeslutning finansieres ved salg av Kelibereiendeler	115	128	141	169	220	mill. kr
Total profitt etter investeringer	8,5	17,2	46,9	94,4	152,8	mrd. kr
Salg av 40% til investor	-3,4	-6,9	-18,8	-37,8	-61,1	mrd. kr
Gjenstående verdi til aksjefordeling	5,1	10,3	28,1	56,6	91,7	mrd. kr
Antall aksjer pr. 16.06.2016	500,0	555,5	611,1	666,6	722,2	mill. aksjer
Bidrag aksjeverdi (dersom salg "i dag")	10,2	18,6	46,0	85,0	126,9	kr/aksje
Ved P/E (aksjeverdi/resultat pr. aksje)	16	18	20	22	24	-
Aksjeverdi når P/E legges til grunn for 60% av årlig inntjening (salg av 40% til investor)	7,1	10,7	15,3	21,0	28,0	kr/aksje
EBITDA ved dagbruddsdrift (fra Sintef rapport 2013 "Økonomiske ringvirkninger av mineralbrudd i Engebøfjellet") Sintef har beregnet ebitda til 60% ved dagbruddsdrift.	473	523	573	623	673	mill. NOK
EBITDA ved underjordsdrift (fra Sintef rapport 2013 "Økonomiske ringvirkninger av mineralbrudd i Engebøfjellet") Sintef har beregnet ebitda til 35% ved underjordsdrift.	382	399	416	433	450	mill. NOK
Aksjekurs basert på 15 år med dagbruddsdrift og 5 år med underjordsdrift (P/E=20) og hensyntatt 40% inntektsreduksjon pga. salg til investor (fra Sintef rapport 2013 "Økonomiske ringvirkninger av mineralbrudd i Engebøfjellet")	10,8	10,6	10,5	10,4	10,3	kr/aksje

Tidligere oppdatering: 13.06.2015:

Verdivurdering av rutilforekomsten i Engebø. Oppstartskostnader på 300 mill USD er trukket ifra.

"15000 m kjerneboringer har påvist kjente ressurser på 400 millioner tonn med god rutilførende eklogitt med et snittinnhold på ca 3,5 % rutil. Innholdet varierer mellom 2 % og 7 %, og rutilen er disseminert (spredt) i eklogittbergarten. Forekomsten fortsetter ned mot dypet, og store mengder sannsynlig ressurs er indikert ved hjelp av gravimetriske undersøkelser."

Engebø-forekomsten inneholder rutil som kan fremstilles i renhet av 93 – 96 % TiO2.

Langtidskontrakter for titan rutil 95% TiO₂ i bulk ligger rundt USD 1000 pr. tonn

	Lav	Snitt	Høy	Enhet
Forekomst @ 3,77%	91,95	122,6	306,5	mill tonn
Forekomst @ 3,75%	23,775	31,7	79,25	mill tonn
Produksjonstid	46	58	138	år
Rutilkonsentrasjon i eklogitten	3,58 %	3,77 %	3,96 %
Rutilkonsentrasjon i eklogitten	3,56 %	3,75 %	3,94 %
Rutilmalm totalt	4127220	5792590	15205549	tonn
Utvinningsgrad	55 %	55 %	55 %
Årlig rutilproduksjon (95% TiO2)	90000	100000	110000	tonn
Salgsverdi 95% TiO2	750	1000	1250	USD/tonn
Break even	375	500	625	USD/tonn
Profitt pr tonn 95% TiO2	375	500	625	USD/tonn
26.05.2015: 1 USD = 7,75 NOK	6,975	7,75	8,525	NOK/USD
Profitt pr tonn 95% TiO2	2616	3875	5328	NOK/tonn
Årlig profitt	235,4	387,5	586,1	mill. kr
Total profitt	10,8	22,4	81,0	mrd. kr
Minus investeringskostnader	2,22	2,22	2,22	mrd. kr
Total profitt etter investeringer	8,6	20,2	78,8	mrd. kr
Antall aksjer pr. 29.12.2014	308,5	308,5	308,5	mill. aksjer
Estimert akseutvidelse	19 %	25 %	31 %	økning
Antall aksjer etter utvidelse	366,3	385,6	404,9	mill. aksjer
Bidrag aksjeverdi	23,4	52,5	194,6	kr/aksje

Årlig utvinning av 100 000 tonn granatkonsentrat som biprodukt er ikke tatt med i beregningene.

Risikovurdering

Rutilpriser

Titanpriser (alibaba):

Food grade E171

Rutil