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MINING INDUSTRY

Q1 2020 VALUATION UPDATE INDUSTRY – VALUATION UPDATE “Industry valuation multiples have varied significantly due to the recent market dislocation caused by COVID -19 ‘s global pandemic. We present below valuation multiples before the market disruption (February 19, 2020) as well as the latest available as of the publication date of this report” CURRENT MARKET SITUATION COMPRABLE PUBLIC COMPANIES – GLOBAL

Annual Average Pre Downturn After Downturn Market Enterprise Sales EBITDA EV / EBITDA February 19, 2020 April 27, 2020 Company Country Cap. Value US$M Margin EV / EV / EV / EV / US$MM US$M 2018 2019 EBITDA Revenue EBITDA Revenue

Agnico Eagle Mines Limited CAN $14,615 $16,033 $2,495 41.8% 11.6x 17.0x 12.9x 5.3x 15.4x 6.4x

Anglo American plc GBR $21,235 $31,518 $29,870 29.6% 4.7x 4.7x 4.5x 1.5x 3.5x 1.1x

Barrick Corporation CAN $47,836 $57,639 $9,717 46.8% 5.4x 10.2x 11.1x 5.0x 13.2x 6.4x

BHP Group AUS $92,594 $108,880 $46,160 51.1% 6.9x 6.5x 6.2x 3.2x 5.1x 2.6x

Shaanxi Industry Company CHN $10,030 $12,286 $10,542 33.0% 4.9x 4.7x 4.2x 1.4x 3.6x 1.2x Limited China Coal Energy Company CHN $6,047 $18,922 $18,569 18.7% 8.5x 7.1x 6.5x 1.2x 5.4x 1.0x Limited China Shenhua Energy Company CHN $41,711 $45,678 $33,315 34.8% 4.7x 3.9x 3.8x 1.4x 3.9x 1.4x Limited

Coal India Limited IND $11,168 $6,121 $13,136 25.6% 11.5x 4.9x 3.0x 0.8x 1.9x 0.5x

En+ Group International public RUS $5,462 $18,516 $11,752 18.2% 4.2x 4.6x 5.7x 1.8x 4.8x 1.6x joint-stock company

First Quantum Minerals Ltd. CAN $4,192 $13,574 $4,067 39.7% 13.3x 9.5x 10.3x 4.1x 9.2x 3.6x

Fortescue Group Limited AUS $22,797 $23,470 $12,910 65.2% 3.7x 5.5x 2.9x 1.9x 3.0x 2.0x

Freeport-McMoRan Inc. USA $12,850 $29,430 $13,408 11.8% 5.1x 7.6x 13.7x 2.3x 18.4x 2.2x

Fresnillo Plc MEX $6,579 $7,153 $2,120 33.1% 9.4x 9.1x 10.3x 3.6x 10.9x 3.6x

Glencore plc CHE $22,979 $54,751 $215,111 4.6% 7.5x 5.6x 7.1x 0.3x 5.6x 0.3x

Grupo México, S.A.B. de C.V. MEX $15,292 $21,396 $10,683 50.5% 6.3x 6.0x 5.6x 2.7x 5.2x 2.6x

Jiangxi Company Limited CHN $5,061 $8,350 $34,520 2.9% 8.5x 9.9x 9.4x 0.2x 8.2x 0.2x

MMC RUS $42,631 $50,165 $13,563 59.5% 8.2x 7.0x 9.1x 5.1x 6.2x 3.7x

Newcrest Mining Limited AUS $14,125 $15,429 $3,802 46.1% 9.5x 10.4x 9.7x 4.4x 9.8x 4.4x

Newmont Corporation USA $50,682 $56,108 $9,740 39.0% 7.5x 10.4x 11.9x 4.9x 13.0x 5.8x

Public Joint Stock Company RUS $5,963 $7,037 $3,397 49.5% 5.1x 5.1x 6.5x 3.1x 4.8x 2.5x ALROSA Public Joint Stock RUS $21,606 $24,470 $4,152 64.2% 8.0x 8.4x 7.8x 5.0x 11.0x 7.1x Company Polyus

Rio Tinto Group GBR $79,019 $86,696 $43,165 43.4% 6.2x 5.9x 5.5x 2.4x 4.8x 2.1x

Saudi Arabian Mining Company SAU $12,010 $25,915 $4,728 29.8% 18.6x 17.2x 18.3x 5.8x 17.4x 5.5x (Ma'aden)

South32 Limited AUS $5,902 $5,646 $6,948 17.9% 5.1x 4.2x 5.6x 1.2x 4.0x 0.9x

Vale S.A. BRA $40,613 $47,870 $36,979 36.0% 6.4x 5.2x 4.9x 2.2x 5.3x 1.8x

Zijin Mining Group Company CHN $13,095 $19,689 $19,546 10.5% 9.0x 9.7x 12.8x 1.2x 9.5x 1.0x Limited Mean 34.8% 7.7x 7.7x 8.1x 2.8x 7.8x 2.8x Median 35.4% 7.2x 6.7x 6.8x 2.4x 5.5x 2.2x

Mining Industry Fuente: Capital IQ, Mergermarket Seale & Associates Q1 2020 Creative Solutions. Trusted Advice. % Size EV / EV / Date Target Country Description Buyer Acquired US$M EBITDA Revenue

Explores and operates gold Mar-20* SEMAFO Inc. CAN Endeavour Mining Corporation 100% $845 2.8x 1.6x mines Liaoning Hongyang Energy Engages in bituminous coal Mar-20 CHN Liaoning Energy Industrial Co., Ltd. 24% $188 11.3x 1.5x Resource Invest Co.,Ltd mining Comprises a gold Mar-20* San Francisco mine MEX Magna Gold Corp. 100% $7 - - producing mine En+ Group International public joint- Mines and refines bauxite OOO Irkutskenergosvyaz Feb-20 RUS 21% $1,579 5.4x 1.7x stock company and nepheline Irkutskenergo Process. Center Tata Chemicals (Soda Ash) Mines and processes trona Dec-19 USA Valley Holdings, Inc. 25% $195 7.7x 1.7x Partners, Inc. ore into soda ash

Dec-19 Leagold Mining Corporation CAN Operates gold mines Equinox Gold Corp. 100% $897 6.9x 1.7x

Explores and develops Jiangxi Copper (Hong Kong) Dec-19* First Quantum Minerals Ltd. CAN 18% $1,116 10.3x NM mineral properties Investment Company Limited Explores and operates gold Aug-19 Avesoro Resources Inc. CAN Avesoro Jersey Limited 27% $27 9.8x 1.1x assets Los Ricos Property in Jalisco, Aug-19* MEX Comprises diamond mines GoGold Resources Inc. 100% $7 - - Sonora Lithium Project of Comprises lithium mining Ganfeng International Trade Jun-19 MEX 23% $10 - - Bacanora Lithium Plc properties and concessions (Shanghai) Co., Ltd. GeoProMining Investment (CYP) Explores and processes Jun-19 CYP AEON Corporation 48% $126 3.8x 1.7x Limited Henan Zhongyuan Gold Smelter Mining, smelting, refining, May-19 CHN Zhongjin Gold Corp., Ltd. 61% $966 - 0.5x Co., Ltd. and processing of gold Acacia Mining plc (nka:Barrick TZ Mines, processes, and sells May-19 GBR Corporation 36% $427 NM 1.7x Limited) gold Explores, produces and Apr-19 Red 5 Limited AUS Undisclosed Buyer 20% $21 10.7x 1.1x mines gold deposits Shandong Humon Smelting Co., Mar-19 CHN Explores and mines gold Jiangxi Copper Company Limited 30% $444 11.0x 0.6x Ltd. Explores and develops Jan-19 Inc. CAN Newmont Mining Corporation 100% $13,085 NM NM precious metal properties Explores for and produces Nov-18 Doray Minerals Limited AUS Lake Resources Limited 100% $124 NM 1.0x gold and copper MINING INDUSTRY –ExploresVALUATION and develops UPDATE Nov-18 Tahoe Resources Inc. USA Pan American Silver Corp. 100% $1,391 13.2x 2.7x metal properties Explores and develops gold Sep-18 Randgold Resources Limited JEY Barrick Gold Corporation 100% $6,515 10.3x NM CURRENT MARKET SITUATION deposits Explores and develops gold Spitfire Materials Limited Jun-18 Excelsior Gold Limited AUS 100% $25 2.8x 0.9x COMPRABLE PUBLIC COMPANIESproperties – MEXICO (nka:Bardoc Gold Limited) Explores for, develops, Jun-18 Atlas Iron Limited AUS Hancock ProspectingAnnual Pty Average Ltd 80%Pre Downturn$321 AfterNM Downturn0.9x Marketmines, andEnterprise sells iron ore Sales EBITDA EV / EBITDA February 19, 2020 April 27, 2020 Company Country ExploresCap. andValue develops Mar-18 Klondex Mines Ltd. USA US$MHecla MiningMargin Company 100%EV / $469EV / EV8.5x / EV1.7x / US$MMmineral propertiesUS$M 2018 2019 EBITDA Revenue EBITDA Revenue Compañía Minera Autlán, S.A.B. Explores, mines and Jan-18 Brio Gold Inc. CANMEX $95 $208 $420Leagold19.1% Mining Corporation3.0x 3.6x 100%3.8x $3620.7x 13.1x3.2x 0.7x1.6x de C.V. processes gold Explores for gold and silver FresnilloJan-18 PlcPrimero Mining Corp. CANMEX $6,579 $7,153 $2,120First Majestic33.1% Silver9.4x Corp. 9.1x 100%10.3x $1273.6x 10.9x15.5x 3.6x1.2x deposits Explores and develops , GrupoOct-17 México,Volcan S.A.B. Compañía de C.V. Minera S.A.A. PERMEX $15,292 $21,396 $10,683Glencore50.5% plc 6.3x 6.0x 16%5.6x $7332.7x 17.4x5.2x 2.6xNM lead and silver deposits Industrias Peñoles, S.A.B. de MEX Explores$2,937 and$5,041 develops $4,472 20.7% 5.4x 6.7x 7.2x 1.5x 7.0x 1.5x C.V.Sep-17 Richmont Mines Inc. CAN Alamos Gold Inc. 100% $764 15.3x NM mining properties Minera Frisco,Six SubsidiariesS.A.B. de C.V. of The National MEX Exploration,$504 develop$1,389 and $504Tronox Limited3.4% (nka:Tronox8.5x 12.0x NM 3.1x NM 3.6x Feb-17 USA 100% $2,215 9.4x 1.7x Titanium Dioxide Company Ltd. mining of ferrous metals MeanHoldings25.4% plc) 6.5x 7.5x 6.7x 2.3x 6.6x 2.4x NM: Not Meaningful Median 20.7% 6.3x 6.7x 6.4x Mean2.7x 6.1x9.8x 2.6x1.4x *Announced Median 10.3x 1.6x

Mining Industry Fuente: Capital IQ, Mergermarket Seale & Associates Q1 2020 Creative Solutions. Trusted Advice. MINING INDUSTRY – VALUATION UPDATE

CURRENT MARKET SITUATION COMPARABLE TRANSACTIONS - GLOBAL

% Size EV / EV / Date Target Country Description Buyer Acquired US$M EBITDA Revenue

Explores and operates gold Mar-20* SEMAFO Inc. CAN Endeavour Mining Corporation 100% $845 2.8x 1.6x mines Liaoning Hongyang Energy Engages in bituminous coal Mar-20 CHN Liaoning Energy Industrial Co., Ltd. 24% $188 11.3x 1.5x Resource Invest Co.,Ltd mining Comprises a gold Mar-20* San Francisco mine MEX Magna Gold Corp. 100% $7 - - producing mine En+ Group International public joint- Mines and refines bauxite OOO Irkutskenergosvyaz Feb-20 RUS 21% $1,579 5.4x 1.7x stock company and nepheline ore Irkutskenergo Process. Center Tata Chemicals (Soda Ash) Mines and processes trona Dec-19 USA Valley Holdings, Inc. 25% $195 7.7x 1.7x Partners, Inc. ore into soda ash

Dec-19 Leagold Mining Corporation CAN Operates gold mines Equinox Gold Corp. 100% $897 6.9x 1.7x

Explores and develops Jiangxi Copper (Hong Kong) Dec-19* First Quantum Minerals Ltd. CAN 18% $1,116 10.3x NM mineral properties Investment Company Limited Explores and operates gold Aug-19 Avesoro Resources Inc. CAN Avesoro Jersey Limited 27% $27 9.8x 1.1x assets Los Ricos Property in Jalisco, Aug-19* MEX Comprises diamond mines GoGold Resources Inc. 100% $7 - - Mexico Sonora Lithium Project of Comprises lithium mining Ganfeng International Trade Jun-19 MEX 23% $10 - - Bacanora Lithium Plc properties and concessions (Shanghai) Co., Ltd. GeoProMining Investment (CYP) Explores and processes Jun-19 CYP AEON Corporation 48% $126 3.8x 1.7x Limited metal ores Henan Zhongyuan Gold Smelter Mining, smelting, refining, May-19 CHN Zhongjin Gold Corp., Ltd. 61% $966 - 0.5x Co., Ltd. and processing of gold Acacia Mining plc (nka:Barrick TZ Mines, processes, and sells May-19 GBR Barrick Gold Corporation 36% $427 NM 1.7x Limited) gold Explores, produces and Apr-19 Red 5 Limited AUS Undisclosed Buyer 20% $21 10.7x 1.1x mines gold deposits Shandong Humon Smelting Co., Mar-19 CHN Explores and mines gold Jiangxi Copper Company Limited 30% $444 11.0x 0.6x Ltd. Explores and develops Jan-19 Goldcorp Inc. CAN Newmont Mining Corporation 100% $13,085 NM NM precious metal properties Explores for and produces Nov-18 Doray Minerals Limited AUS Silver Lake Resources Limited 100% $124 NM 1.0x gold and copper Explores and develops Nov-18 Tahoe Resources Inc. USA Pan American Silver Corp. 100% $1,391 13.2x 2.7x metal properties Explores and develops gold Sep-18 Randgold Resources Limited JEY Barrick Gold Corporation 100% $6,515 10.3x NM deposits Explores and develops gold Spitfire Materials Limited Jun-18 Excelsior Gold Limited AUS 100% $25 2.8x 0.9x properties (nka:Bardoc Gold Limited) Explores for, develops, Jun-18 Atlas Iron Limited AUS Hancock Prospecting Pty Ltd 80% $321 NM 0.9x mines, and sells iron ore Explores and develops Mar-18 Klondex Mines Ltd. USA Hecla Mining Company 100% $469 8.5x 1.7x mineral properties Explores, mines and Jan-18 Brio Gold Inc. CAN Leagold Mining Corporation 100% $362 13.1x 1.6x processes gold Explores for gold and silver Jan-18 Primero Mining Corp. CAN First Majestic Silver Corp. 100% $127 15.5x 1.2x deposits Explores and develops zinc, Oct-17 Volcan Compañía Minera S.A.A. PER plc 16% $733 17.4x NM lead and silver deposits Explores and develops Sep-17 Richmont Mines Inc. CAN Alamos Gold Inc. 100% $764 15.3x NM mining properties Six Subsidiaries of The National Exploration, develop and Tronox Limited (nka:Tronox Feb-17 USA 100% $2,215 9.4x 1.7x Titanium Dioxide Company Ltd. mining of ferrous metals Holdings plc) NM: Not Meaningful Mean 9.8x 1.4x *Announced Median 10.3x 1.6x

Mining Industry Fuente: Capital IQ, Mergermarket Seale & Associates Q1 2020 Creative Solutions. Trusted Advice. Harrison Gypsum, LLC

Target: Harrison Gypsum, LLC Transaction Type: Sell-side advisory has been Industries: Distribution & Supply Chain Management; recapitalized by Non-metallic Mining and Minerals Geography: Florida, Oklahoma and , USA

Situation “I had very specific demands when it Seale & Associates was retained by the family owners to came time to consider a private equity- advise on a recapitalization of Harrison Gypsum as part of a led leverage recapitalization transaction and I was looking for a trusted advisor succession planning and wealth diversification strategy, as to make sure my demands were met well as an investment in additional gypsum reserves, and that I was protected. Seale equipment, and add-on acquisitions. The majority owner delivered on every promise they made wanted to continue but have a partial liquidity event. and patiently worked with me Harrison Gypsum is a leading gypsum mining and processing throughout the process until I got the company. deal I wanted and deserved.” “Seale’s experience and credibility was of the utmost importance during the Seale & Associates Approach negotiation process with the private equity firm and they knew how to Seale professionals ran a competitive auction process, manage and resolve each challenge.” managing multiple strategic and private equity investors with Russ Harrison, Founder/Owner and experience in the mining space, in order to identify a partner Chief Executive Officer, Harrison with the capital and shared vision of the owner/management. Gypsum, LLC

“We had a very positive experience Outcome working on a transaction managed by the Seale team. Although they were The process resulted in a majority recapitalization by H.I.G. strong advocates in securing the best interests for their client, they still Capital, a Miami, Florida-based private equity investment firm earned our trust with professionalism with over $10 billion of equity capital under management. and integrity.” Russ Harrison, founder/owner and CEO, remained a significant shareholder and continued to lead the company. Keval Petal, Managing Director, H.I.G. Capital Seale & Associates Creative Solutions. Trusted Advice. REPRESENTATIVE MEXICO ENGAGEMENTS

intelectiva® has acquired has merged with merged its merged its has acquired has acquired beverage division beverage division with with KFC Costa Rica a business of from

Grupo Educativo IEJV

has partnered with has partnered with has been acquired by Acquisition Acquisition a subsidiary of Advisory Advisory has been acquired by Services Services

has formed a partnership in has formed a has carved out and sold the casting tools business sold partnership to market sold between its concrete pumping and develop oil storage assets in Mexico and distribution in has been acquired by to Mexico with to and to

has sold has acquired Holding company of Cosmocel Química to Corporate Corporate has been acquired by acquired a majority stake Finance Finance dealers of in a business unit of Advisory Advisory Services Services

has sold has acquired its sanitaryware business Grupo Galaz, S.A de C.V. has partnered with has been acquired by workshop and store in and has been acquired by Mexico City from Acquisition Advisory to Services

Washington, D.C. | Miami | Mexico City | Monterrey Mexico Contact Information Seale & Associates James A. Seale President Creative Solutions. Trusted Advice. [email protected]

Brett M. Carmel Senior Managing Director & Co-founder Since 1999, Seale & Associates has been the trusted advisor [email protected] Felipe Bueno Viesca to highly respected public and private companies from around Senior Director the world, with a track record of success in a diverse range of [email protected] Sergio Garcia del Bosque industries. Seale is an elite boutique global investment banking Managing Director [email protected] firm with extensive experience in mergers and acquisitions Adan Sierra (M&A), corporate finance advisory, and enterprise level Managing Director [email protected] strategy consulting. Our experienced team of professionals are Carlos Hernandez committed to serving clients with excellence and integrity, Managing Director [email protected] while offering innovative ideas and solutions to address Alejandro Montemayor complex dealings. Senior Associate [email protected] ADVISOR TO LEADING COMPANIES WORLDWIDE Sofia Felix Business Development [email protected]

Armando Rios Analyst [email protected]

Aaron Garcia Analyst [email protected]

Daniel Schorn Analyst [email protected]

Nicolas Reynoso Analyst CONTACT INFORMATION [email protected]

Miguel Leal Business Development [email protected]

Alberto Lopez Junior Analyst [email protected]

Alejandro Salinas Junior Analyst Headquarter Latin America Office [email protected] 901 N. Glebe Road Av. Ejército Nacional 769 nd Hector Roman Suite 500 2 floor Junior Analyst Arlington, Virginia Mexico City [email protected] +1 (703) 294 6770 +52 (55) 8000 7463 Please contact us if you would like further information about M&A trends and/or specific transaction multiples for your industry.

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