BAT Vanadium Potential, page-4

[COLOR=rgb(0.000000%, 22.400000%, 45.500000%)]From the report:[/COLOR]

[COLOR=rgb(0.000000%, 22.400000%, 45.500000%)]Valuation and Risks [/COLOR]
We have used a risked sum-of-the-parts (SOTP) valuation to derive our A$0.26/share price target. We have applied a discount rate of 12% and a AUD to USD exchange rate of 0.75. For a breakdown of the valuation, risk weighting and our rationale, refer Figure 7.
Montepeuz
We have discounted the post-tax NPV of Montepeuz by 50% until a funding solution becomes apparent. As described below, we expect this to become visible in the short to medium term and we will revise our valuations accordingly. Key risks to our valuation are the production and commodity pricing assumptions.
Balama
Balama shapes as the second mining hub for BAT and we have estimated a maiden post-tax NAV for the project following the release of a concept study. We have used similar assumptions to those at Montepeuz (given the projects proximity) but expect higher basket prices and lower costs as a result of the projects higher grade and higher proportion of Large and Jumbo Flake. We have discounted our valuation at Balama by 80% given its early stage. We will revise this as the project matures. Key risks remain production, cost and commodity assumptions.