credit suisse equity research mining nuggets

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Credit Suisse Equity Research Mining Nuggets Sunday, March 5, 2017 RESEARCH ANALYSTS Anita Soni, P. Eng, CFA Research Analyst (416) 352-4587 [email protected] Robert Reynolds, CPA, CA, CFA Research Associate/Analyst (416) 352-4516 [email protected] Ralph M. Profiti, CFA Research Analyst (416) 352-4563 [email protected] Yan Truong, CFA Research Associate (416) 352-4584 [email protected] Gold & Gold Equities Base Metals, Silver and Uranium DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

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Page 1: Credit Suisse Equity Research Mining Nuggets

Credit Suisse Equity Research

Mining Nuggets Sunday, March 5, 2017 RESEARCH ANALYSTS

Anita Soni, P. Eng, CFA

Research Analyst (416) 352-4587

[email protected]

Robert Reynolds, CPA, CA, CFA

Research Associate/Analyst (416) 352-4516

[email protected]

Ralph M. Profiti, CFA

Research Analyst (416) 352-4563

[email protected]

Yan Truong, CFA

Research Associate (416) 352-4584

[email protected]

Gold & Gold Equities Base Metals, Silver and Uranium

DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, LEGAL ENTITY DISCLOSURE AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Page 2: Credit Suisse Equity Research Mining Nuggets

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Company News

Commodity News

Commodity and Currency Price Summary

Weekly Top 5 Outperformers and Laggards

Rest of Group Performance

Consensus Estimate Changes

Short Interest

Company Valuations – EV/EBITDA and P/CF

Table of Contents

Page 3: Credit Suisse Equity Research Mining Nuggets

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Catalysts for March: Most earnings and guidance have passed with only FNV yet to report meaningful results on March 24th.

We’re also waiting for Q4 financial results from DGC (Q4 production and AISC pre-guided, we have our eye on unit costs) and

SMF (March 8th, not much new expected). We’ve created a short list of catalysts for the month ahead.

• PDAC – A conference from March 5-8th in Toronto that brings together the industry not already in Toronto.

• M&A – The larger companies have mostly emphasized prudent capital allocation with a focus on internal projects. However,

stronger balance sheets, collective commentary around “opportunistic” M&A and partnerships, along with a potential Fed hike

which could weigh on short term prices, could create a conducive environment for deals.

• Mine plan update from DGC – Expected before the end of March and a big catalyst because of significant changes anticipated

vs. the plan released one year ago. Our view on DGC is Neutral (mixed and uncertain) given the NAV sensitivity to throughput,

strip, grade and costs. Positively, DGC is a long life, large scale asset in Canada that could be attractive to a potential acquirer.

Negatively, operational delivery has been inconsistent and we currently forecast relatively low FCF levels until post 2030 due to

our assumptions for capex and stripping requirements.

• Technical report fil ings following reserve updates: Reserve updates, when they involve a new mine plan that represents

material new information since the last 43-101 technical report, trigger the requirement to file a new technical report within 45

days under OSC rules (see Technical report triggers article from the law firm Cassels Brock). Given most companies reported

between February 15-23rd, this puts the deadline between March 31st (for Feb. 15th reporters) and April 7th (for 23rd reporters).

Here are our best estimates of assets that may have a new report filed (keeping in mind that companies have wide latitude to

assess materiality when determining if a report needs to be filed).

• Centerra – Mt. Milligan report to be filed before end of March triggered by reserve update, timing announced by CG.

• Kinross – Bald Mountain (significant reserve increase), CS estimate as KGC has not indicated a report will be filed.

• Agnico – Upper Beaver (new reserve), CS estimate.

• Barrick – Kalgoorlie (added reserve with Morrison cut-back), Lagunas Norte (added reserve with recovery technology) and Hemlo

(added reserve). CS estimates in all cases as company has not indicated that any reports will be filed.

• Eldorado – Kisladag (reserve reduction) we would anticipate a new 43-101, however EGO has infrequently filed 43-101s with the

last one in 2014 for Certej and the company has not indicated that a report will be filed.

• Yamana – El Penon (new mine plan) and Upper Beaver, CS estimate for both.

• IAMGold – Already filed an updated technical report for Westwood on Feb. 22nd due to the reserve increase.

Notable Company News

Page 4: Credit Suisse Equity Research Mining Nuggets

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Newmont (NEM): Hosted a tour of its Merian mine (11% of NAV) in Suriname. Merian entered commercial production in Q4/16

and has ramped up very well. Incremental information included unit costs and a chart with annual throughput and grade. Positives

were (i) throughput has exceeded nameplate by +18% at times; (ii) "full potential" program initiated in 2017, upside through process

cost reduction and wet season productivity; and (iii) potential mine life extension beyond 2030 and saprolite beyond 2022 through

continued reserve conversions, brownfields saprolite targets (Sabajo) and underground. We view local inflation and the wet season

as the key risks. Following NEM’s Feb. 21st guidance update we reduced our target price to US$47 from US$51 on the back of a

4% lower NAV and 13% lower 2017 OpCFa. We rate NEM Outperform due to its cash flow stability, solid exploration track record

and strategic focus on FCF growth. NEM has the strongest balance sheet of its peers and highlighted its organic project pipeline as

its first capital allocation priority, returning cash to shareholders second and opportunistic M&A third. NEM has lagged peers ~13%

YTD and we view our TP revision as priced in. Full report

SEMAFO (SMF): Updated its 2016YE reserve/resource estimates. The 8% reserve decline reflected depletion at Mana, while

global resources grew 3% with the addition of 0.41Moz to inferred resources at Natougou’s West Flank Zone. We believe the West

Flank Zone could improve the later years of Natougou’s mine life, as the 3.72g/t inferred grade exceeds the Feb. 2016 life of mine

plan’s head grade beginning in year six. We rate SMF Outperform due to its FCF growth with the Natougou start up in H2/18

(highest FCF yield in our coverage over 2019- 2021). SMF also has a balance sheet which fully funds the project, low costs and

operational consistency. SMF trades at 1.00x P/NAV at spot, in-line with peers at 1.03x vs. a 0.15x premium since our August 2016

initiation. Full report

Barrick (ABX): On March 3rd Acacia’s (63.9% owned by ABX and 7.2% of 2017 minesite FCF) stock declined 13.5% after

Tanzania’s Ministry of Energy and Minerals announced a ban on exports of gold/copper concentrate with immediate effect. Acacia

estimates ~30% of revenue was accounted for by gold/copper concentrate exports (45% of Bulyanhulu revenue and 55% of

Buzwagi revenue, North Mara produces dore and is not impacted). Operations are at the moment continuing to produce as normal

with ACA stockpiling concentrate material while it awaits further clarification. CS analyst covering ACA Conor Rowley expects an

update from ACA early next week. The government cited a desire to bring the economic benefits of concentrate beneficiation in-

country. ACA report

Australia Gold Reporting Season wrap up: CS Australian gold analyst Mike Slifirski published a wrap-up report with his key

themes and investment views for each company. His preferred companies (Australian tickers) are EVN (top pick), NST, OGC,

SBM, AQG and PRU. His least preferred companies are NCM and RRL. Full report

Notable Company News

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Ideas Engine – Global Mining 2020 Capex: Our global mining team looks at six of the largest diversified miners (Anglo, BHP,

Glencore, Rio, Teck and Vale) and assesses future capital allocation and capex. We see a rebounding capex cycle as a sign of a

healthier industry and believe it only becomes a problem after several years of elevated returns (well above what is currently priced

in), when more marginal projects are pursued. With growth capex having hit trough levels in 2016, volumes will begin to decline

post 2020 without fresh investment. Our preferred names are Rio, Glencore and Teck. Full report

Teck: We have done an in-depth analysis of Teck’s go-forward capex requirements (please contact us or your salesperson for the

data). Teck’s capex peaked in 2013 at C$2.6B but declined through 2015 to protect the balance sheet in a weak commodity

environment. The 2017 capex budget is C$2.2B (+16% YoY), with C$1.2B for sustaining capex and capitalised stripping – a partial

catch up on previous deferrals. With the completion of Fort Hills in late 2017 and absent a sanctioning decision at QBII, we forecast

Teck’s capex to normalise at ~C$1.2B pa by 2020. From 2020, we estimate production (on a copper-equivalent basis) will decline at

an average rate of -2% pa to 2030 assuming no capex is invested into brownfield/greenfield projects (i.e. QBII). To maintain volume

flat post-2020, we estimate Teck would require capex of ~C$2.0B pa. While Teck shares are not immune to volatility in spot coking

coal prices, we see compelling long-term valuation support based on cash generation and deleveraging catalysts, with potential

reflation of the steelmaking cost curve supporting coking coal prices. We estimate Teck is trading at an equity-implied coking coal

benchmark price of US$120/t (at US$2.60/lb copper, US$1.25/lb zinc and CAD$0.76). See page 19 in full report.

Iron Ore Forecast Update: Our commodities team has raised its 2017 and 2018 iron ore price forecasts to meet actuals, and

updated our views on the likely price trajectory and drivers from here. We raise our 2017 China CFR to $78/t from $55/t and 2018

to $58/t from $53/t. We expect Q2/17 to be the peak with Chinese construction season, and believe a lower price will be needed at

some point in 2017 to force mine exits due to over-supply. We forecast a decline to $55/t in Q4/17. Upside risks to our forecasts

include China’s anti-pollution steel capacity cuts overshooting, as CS analyst Trina Chen outlined. A steel shortage would see

prices leap, with iron ore following. On the downside, the risk is that high prices stimulate additional supply, particularly from

China’s domestic mines. Full report

Notable Company News

Page 6: Credit Suisse Equity Research Mining Nuggets

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Gold: Traded down ~$20/oz on the week to $1,230/oz. The big story of the week was the market pricing in a Fed rate hike with the

March 15th FOMC meeting. Hawkish comments from multiple FOMC members, including Yellen on Friday, caused the market-

implied odds of a March hike to increase to 94% from 39% one week ago.

• US Economy Notes – Beware the Odds of March: Global Equity Strategy: Three recent developments have changed the

likely path of US policy rates. First, US core inflation has risen more than expected. Second, incoming data have been consistent

with strong global growth momentum (in our view, a likely near-term peak). Third, Fed rhetoric has become increasingly hawkish,

with a hint of urgency. Our US economists expect three hikes from the Fed this year, most likely in March, September and

December. They expect no changes to the Fed’s balance sheet policy in 2017 (i.e. the reinvestment of maturing treasuries and

mortgage-backed securities). Full report

• FX team: On March 1st our team highlighted low risk premia being priced in for USDJPY and EURUSD around the March 15th

FOMC meeting date. The one currency pair where they still see space for interest rate differential dynamics to drive FX is

USDCAD, especially in light of Feb. 28th’s dovish BoC meeting. Full report

• India gold demand: GFMS reported that India’s gold imports increased to 50t in February, significantly higher than the 27t one

year ago (which was impacted by the Jeweller’s strike). This follows ~58t of imports estimated in January, which is typically a

stronger month. Article link

Notable Commodity News

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Commodity Price and Currency Summary

Source: Bloomberg, Credit Suisse Estimates

1-month 1-week Current Weekly ∆ Commentary

Gold (US$/oz) $1,216 $1,257 $1,227 -2.3%

Si lver (US$/oz) $17.49 $18.37 $17.75 -3.4%

Copper (US$/ lb) $2.66 $2.68 $2.68 -0.2%

Zinc (US$/ lb) $1.29 $1.28 $1.26 -2.1%

Lead (US$/ lb) $1.06 $1.02 $1.02 -0.4%

Nickel (US$/ lb) $4.72 $4.93 $4.98 1.2%

Uranium (US$/ lb) $25.25 $22.75 $24.50 7.7%

WTI (US$/bbl) $54.17 $53.99 $53.20 -1.5%

Brent - Crude (US$/bbl) $56.85 $56.31 $55.76 -1.0%

Iron ore (US$/ t ) $83.34 $90.50 $91.32 0.9%

Coking coal (US$/ t ) $168 $159 $162 2.3%

1-month 1-week Current Weekly ∆ Commentary

DXY - US Dollar Index $99.79 $101.09 $101.35 0.3%

CAD $0.76 $0.76 $0.75 -2.3%

AUD $0.76 $0.77 $0.76 -1.5%

EUR $1.08 $1.06 $1.06 -0.1%

JPY $113 $112 $114 -1.9%

CNY $6.86 $6.87 $6.89 -0.3%

BRL $3.15 $3.10 $3.14 -1.1%

MXN $20.78 $19.81 $19.63 0.9%

TRY $3.78 $3.60 $3.72 -3.4%

RUB $60.22 $58.38 $58.43 -0.1%

ARS $15.80 $15.48 $15.44 0.2%

CLP $647 $646 $658 -1.8%

GBP $1.26 $1.25 $1.23 -1.7%

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Weekly Top 5 Outperformers and Laggards

This week the group was down 4.49% and the S&P 500 was up 0.67%

Source: Bloomberg, Credit Suisse Estimates

Outperformers

Ticker

Weekly

Performance

90-Day

Performance Commentary

FM.TO 9.00% 3.39%

HBM.TO 5.57% 21.28%

CS.TO 3.64% 67.65%

LUN.TO 3.06% 22.74%

LIF.TO 1.49% 6.48%

Laggards

Ticker

Weekly

Performance

90-Day

Performance Commentary

GSS -25.20% -10.85%

IMG.TO -10.41% -0.78%

AGI.TO -10.34% 13.99%

K.TO -10.02% -2.60%

SMF.TO -9.73% -4.09%

Page 9: Credit Suisse Equity Research Mining Nuggets

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Rest of Group Performance

Source: Bloomberg, Credit Suisse Estimates

This week the group was down 4.49% and the S&P 500 was up 0.67%

Ticker

Weekly

Performance

90-Day

Performance Commentary

CCO.TO 1.04% 16.15%

TCKb.TO 0.52% -18.89%

THO.TO -0.91% -17.65%

CG.TO -1.52% -5.12%

TRQ.TO -1.79% -0.90%

FNV.TO -2.86% 8.13%

YRI.TO -4.37% -13.15%

ABX.TO -4.53% 17.40%

NEM.N -5.57% 1.46%

SLW.TO -6.06% 4.83%

ELD.TO -6.40% 2.60%

G.TO -6.68% 12.50%

SSO.TO -6.89% 5.24%

AEM.TO -7.12% 1.03%

PDN.TO -8.70% 50.00%

DGC.TO -8.90% -13.56%

PAAS.TO -9.64% -5.50%

Page 10: Credit Suisse Equity Research Mining Nuggets

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Consensus Estimate Changes - CFPS

Source: Bloomberg, Credit Suisse Estimates

Week over week change Month over month change

Ticker Q1/17E 2017E 2018E Q1/17E 2017E 2018E

ABX - $0.01 to $2.48 $0.03 to $2.41 $0.09 to $0.68 $0.15 to $2.48 $0.19 to $2.41

AEM - - $0.04 to $3.38 - $-0.28 to $3.08 $-0.47 to $3.38

AGI - - - - $-0.04 to $0.53 $-0.06 to $0.65

CCO - - - $0.04 to $0.28 $-0.11 to $1.04 $-0.35 to $1.41

CG $0.03 to $0.31 - - $0.04 to $0.31 - -

CS - $-0.02 to $0.31 $-0.02 to $0.29 - $0.02 to $0.31 -

DGC - - - - $0.02 to $1.38 $-0.02 to $1.81

ELD - - $-0.03 to $0.33 - - $-0.07 to $0.33

FM - - - $0.14 to $0.37 $0.13 to $1.70 $-0.08 to $2.01

FNV - - - - $-0.03 to $2.53 $-0.07 to $2.77

G - - $0.01 to $1.64 $0.02 to $0.38 - -

GSS - - - - $-0.02 to $0.15 $-0.03 to $0.27

HBM $0.05 to $0.51 $-0.08 to $1.83 $-0.03 to $1.95 $0.14 to $0.51 $0.20 to $1.83 $0.21 to $1.95

IMG - - $0.03 to $0.65 - - $0.02 to $0.65

K - - - $-0.03 to $0.20 $-0.08 to $0.77 $-0.07 to $0.82

LIF $-0.02 to $0.45 $-0.06 to $1.80 - $-0.02 to $0.45 - $0.15 to $1.17

LUN - - $-0.03 to $0.97 $0.04 to $0.27 $0.11 to $0.99 $-0.03 to $0.97

NEM - $-0.29 to $3.82 $0.04 to $4.46 $-0.08 to $1.07 $-0.36 to $3.82 $0.09 to $4.46

PAAS - $-0.01 to $1.47 $0.03 to $1.91 $-0.11 to $0.30 - $0.05 to $1.91

SLW - - - $0.03 to $0.36 - $0.02 to $1.44

SMF - - - - $-0.03 to $0.36 $-0.02 to $0.50

SSO - - - - - -

TCK - $0.18 to $8.20 $0.03 to $6.84 $-0.18 to $2.49 $0.46 to $8.20 $0.20 to $6.84

THO - - - - $-0.04 to $0.96 $-0.02 to $1.26

TRQ - - - - - -

YRI - $-0.02 to $0.53 - - $-0.05 to $0.53 $-0.04 to $0.75

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Consensus Estimate Changes – CFPS (continued)

Other relevant North American Precious and Base Metals producers

Source: Bloomberg, Credit Suisse Estimates

Week over week change Month over month change

Ticker Q1/17E 2017E 2018E Q1/17E 2017E 2018E

AKG - - $-0.08 to $0.49 - - $-0.08 to $0.49

ASR - - - - - -

AU US - - $-0.27 to $3.16 $-0.18 to $3.42

BTO - - - - $-0.04 to $0.20 -

CDE US - $0.02 to $1.05 $0.03 to $1.44 $-0.05 to $0.30 $-0.11 to $1.05 $-0.04 to $1.44

EDV - - - - - -

FR - - - - $-0.04 to $0.65 $-0.03 to $0.95

GOLD US - - - $-0.14 to $1.29 $-0.11 to $5.68 $0.03 to $7.12

GUY - - - - $0.03 to $0.43 $0.07 to $0.72

KDX - - - - - $-0.02 to $0.73

KLG - - - - - -

LUC - - $0.02 to $0.30 -

NSU $-0.04 to $0.03 $-0.04 to $0.19 - $-0.03 to $0.03 $-0.10 to $0.19 -

OGC - - - - - $-0.04 to $0.53

OR - - $0.03 to $0.60 - $0.02 to $0.51 $0.04 to $0.60

PVG - - $0.03 to $2.49 - $0.15 to $0.45 -

RGLD US - - - - $-0.11 to $4.64 $0.43 to $5.44

SSL - - - - - $-0.02 to $0.28

TXG - $0.05 to $2.09 $0.10 to $2.39 $-0.06 to $0.40 $0.12 to $2.09 $0.13 to $2.39

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Short Interest

Source: Bloomberg, Credit Suisse Estimates, Trend is based on change in short interest as a % of float

Ticker Days to cover % of Float Trend, current

3/2/2017 3/2/2017 2/2/2017 12/2/2016 vs. last update

DGC 5.80 6.5% 5.8% 5.5% 0.7%

FNV 4.19 4.8% 4.4% 3.5% 0.4%

LUN 3.92 2.9% 3.1% 6.7% -0.2%

K 3.67 4.1% 4.1% 3.5% 0.0%

SSO 3.17 3.3% 3.2% 3.4% 0.1%

CCO 2.78 2.1% 2.0% 1.5% 0.1%

LIF 2.57 1.8% 1.6% 2.1% 0.2%

AGI 2.50 3.9% 5.7% 4.4% -1.8%

PAAS 2.44 1.6% 1.6% 1.8% 0.0%

SLW 2.42 3.8% 3.7% 3.0% 0.1%

THO 2.04 1.5% 1.4% 0.9% 0.1%

NEM 1.77 1.8% 1.7% 2.1% 0.2%

TRQ 1.67 2.0% 2.0% 3.4% 0.0%

DML 1.65 0.8% 1.0% 0.3% -0.2%

G 1.60 3.9% 3.7% 2.7% 0.2%

ELD 1.38 2.6% 3.1% 3.5% -0.5%

HBM 1.34 2.6% 3.0% 3.0% -0.4%

IMG 1.13 5.2% 5.6% 3.5% -0.4%

AEM 1.03 2.0% 1.8% 2.5% 0.3%

ABX 0.86 1.6% 2.1% 2.4% -0.4%

TCK 0.74 4.6% 4.5% 10.8% 0.0%

FM 0.70 0.9% 1.1% 1.0% -0.2%

YRI 0.66 2.6% 3.0% 2.1% -0.4%

SMF 0.59 0.6% 0.8% 0.5% -0.2%

GSS 0.58 4.0% 5.4% 5.0% -1.4%

PDN 0.27 0.1% 0.2% 0.0% -0.1%

CS 0.13 1.8% 1.4% 1.6% 0.3%

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Company Valuations – Bloomberg Consensus

Source: Bloomberg, Credit Suisse Estimates

EV/EBITDA P/CF

Mkt. cap (US$M) EV (US$M) 2017 2018 2017 2018

Gold & silver equities >$5B

ABX $21,234 $29,154 7.3x 7.6x 7.4x 7.6x

AEM $9,270 $9,930 12.1x 10.4x 13.2x 11.6x

AU $4,345 $6,342 4.1x 3.6x 3.2x 2.9x

GG $12,893 $15,455 9.8x 9.0x 10.0x 9.0x

GOLD $8,535 $8,275 12.8x 11.7x 14.5x 12.9x

KGC $4,169 $5,114 4.7x 4.4x 4.3x 4.0x

NEM $18,096 $21,052 8.9x 8.4x 8.8x 8.0x

Average $11,220 $13,617 8.5x 7.8x 8.8x 8.0x

Gold & silver equities $2-5B

AGI $2,105 $2,158 12.8x 10.1x 13.0x 10.5x

BTO $2,893 $3,224 10.0x 13.1x 9.4x 14.7x

DGC $2,024 $2,243 9.7x 9.0x 9.1x 8.3x

EGO $2,111 $1,874 8.6x 5.7x 12.6x 8.3x

PAAS $2,565 $2,394 9.4x 7.3x 11.3x 8.7x

THO $2,537 $2,449 6.2x 6.6x 7.0x 8.3x

AUY $2,474 $4,018 6.7x 4.8x 4.8x 3.6x

Average $2,272 $2,566 8.8x 7.7x 9.1x 8.2x

Page 14: Credit Suisse Equity Research Mining Nuggets

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Company Valuations – Bloomberg Consensus (continued)

Source: Bloomberg, Credit Suisse Estimates

EV/EBITDA P/CF

Mkt. cap (US$M) EV (US$M) 2017 2018 2017 2018

Gold & silver equities <$2B

AKG $506 $601 8.1x 5.2x 7.5x 5.5x

ASR $536 $475 5.1x 4.8x 7.0x 7.2x

CG CN $1,410 $1,745 3.7x 3.7x 3.6x 3.5x

EDV $1,670 $1,732 7.8x 5.9x 8.0x 6.5x

FR $1,348 $1,271 10.8x 7.1x 12.6x 9.0x

GSS $274 $289 3.7x 2.2x 5.6x 2.9x

GUY $847 $870 10.3x 6.0x 10.6x 6.9x

IAG $1,721 $1,619 5.4x 4.8x 6.1x 5.8x

KDX $890 $772 9.9x 6.1x 12.3x 10.2x

KL $1,388 $1,312 7.3x 4.6x 5.3x 5.9x

LUC $792 $739 4.6x 4.9x 7.3x 8.7x

OGC $1,787 $2,043 4.9x 5.2x 4.9x 5.4x

PVG $1,772 $2,003 <0 37.0x <0 23.0x

SMF $967 $768 5.2x 5.9x 6.7x 8.4x

SSO $1,251 $1,012 6.7x 6.9x 9.5x 9.6x

TXG $1,502 $1,815 8.2x 7.4x 8.5x 8.0x

Average $1,166 $1,191 6.8x 7.4x 7.7x 7.9x

Page 15: Credit Suisse Equity Research Mining Nuggets

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Company Valuations – Bloomberg Consensus (continued)

Source: Bloomberg, Credit Suisse Estimates

EV/EBITDA P/CF

Mkt. cap (US$M) EV (US$M) 2017 2018 2017 2018

Royalty companies

FNV $11,078 $10,801 22.3x 21.9x 24.3x 24.9x

OR $1,164 $900 27.0x 23.1x 29.2x 28.8x

RGLD $4,300 $4,944 15.9x 14.0x 15.8x 14.1x

SLW $8,570 $9,789 16.7x 15.6x 14.7x 14.5x

SSL $636 $614 15.0x 13.6x 15.5x 14.6x

Average $5,149 $5,410 19.4x 17.6x 19.9x 19.4x

Base metals equities

FM $7,845 $13,317 10.9x 8.3x 6.6x 5.3x

TECK $11,750 $17,025 3.9x 5.1x 3.1x 3.9x

TRQ $6,573 $8,432 22.6x 93.9x 22.5x 217.7x

CCO $4,288 $5,161 10.7x 7.9x 12.1x 8.7x

CS $497 $803 5.9x 5.7x 4.5x 4.1x

DML $351 $338 <0 <0 <0 <0

HBM $1,946 $3,032 5.3x 4.8x 4.6x 4.2x

NSU $756 $737 11.3x 7.2x 12.8x 9.4x

LIF $910 $901 8.7x 9.3x 10.5x 14.6x

LUN $4,560 $5,279 6.5x 6.5x 6.7x 6.2x

PDN $134 $466 200.5x 10.4x <0 26.1x

Average $3,601 $5,045 28.6x 15.9x 9.3x 30.0x

Page 16: Credit Suisse Equity Research Mining Nuggets

Companies Mentioned (Price as of 03-Mar-2017)

Agnico Eagle Mines Limited (AEM.N, $41.23) Alacer Gold (ASR.TO, C$2.46) Alacer Gold Corp. (AQG.AX, A$2.39) Alamos Gold Inc. (AGI.N, $7.09) AngloGold Ashnti (AU.N, $10.6) Asanko Gold (AKG.TO, C$3.34) B2Gold Corp. (BTO.TO, C$4.02) Barrick Gold Corp (ABX.N, $18.24, OUTPERFORM[V], TP $25.0) Cameco Corporation (CCO.TO, C$14.53) Capstone Mining Corp. (CS.TO, C$1.71) Centerra Gold Inc. (CG.TO, C$6.49) Denison Mines Corp. (DML.TO, C$0.87) Detour Gold Corporation (DGC.TO, C$15.55, NEUTRAL[V], TP C$21.0) Eldorado Gold (EGO.N, $2.95) Endeavour Mining Corp. (EDV.TO, C$23.94) Evolution Mining Limited (EVN.AX, A$2.05) First Majestic (FR.TO, C$10.99) First Quantum Minerals Ltd. (FM.TO, C$15.26) Franco Nevada Corporation (FNV.N, $62.6) Freeport-McMoRan Inc (FCX.N, $13.2)

Glencore (GLEN.L, 338.25p) Goldcorp Inc. (GG.N, $15.12) Golden Star (GSS.A, $0.75) Guyana (GUY.TO, C$6.64) HudBay Minerals Inc. (HBM.TO, C$11.0) IAMGold (IAG.N, $3.81) Kinross Gold Corp. (KGC.N, $3.37) Kirkland Lake (KLG.TO^L16) Klondex Mines (KDX.TO, C$6.79) Labrador Iron Ore Royalty Corporation (LIF.TO, C$19.07) Lucara Diamond (LUC.TO, C$2.78) Lundin Mining Corp. (LUN.TO, C$8.42) Nautilus Minerals Inc (NUS.TO, C$0.24) Nevsun Resources (NSU.TO, C$3.36) Newcrest Mining (NCM.AX, A$21.1) Newmont Mining (NEM.N, $34.07, OUTPERFORM, TP $47.0) Northern Star Resources Ltd (NST.AX, A$4.05) OceanaGold (OGC.TO, C$3.92) OceanaGold Corporation (OGC.AX, A$3.66) Osisko Gold Royalties Ltd. (OR.TO, C$14.65) Paladin Energy (PDN.TO, C$0.11) Perseus Mining (PRU.AX, A$0.3) Pretivm Res (PVG.TO, C$13.16) Randgold Resources (RRS.L, 7305.0p) Regis Resources Limited (RRL.AX, A$3.23) Rio Tinto (RIO.L, 3340.0p) Royal Gold (RGLD.OQ, $65.43) SEMAFO Inc. (SMF.TO, C$3.99, OUTPERFORM[V], TP C$6.25) Sandstorm Gold (SSL.TO, C$5.61) Silver Standard Resources Inc. (SSO.TO, C$14.05) Silver Wheaton Corp. (SLW.TO, C$26.03) St Barbara Mining (SBM.AX, A$2.38) Tahoe Resources Inc. (THO.TO, C$10.92) Teck Resources Ltd (TECKb.TO, C$27.3, OUTPERFORM[V], TP C$43.0) Torex Gold Resources Inc. (TXG.TO, C$25.27) Turquoise Hill Resources Ltd (TRQ.TO, C$4.44) Yamana Gold (AUY.N, $2.62)

Disclosure Appendix

Analyst Certification

Anita Soni, P. Eng., CFA, Ralph M. Profiti, CFA and Robert Reynolds, CPA, CA, CFA each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

3-Year Price and Rating History for Barrick Gold Corp (ABX.N)

ABX.N Closing Price Target Price

Date (US$) (US$) Rating

21-Mar-14 19.40 21.00 N

31-Mar-14 17.83 20.00

05-May-14 17.47 21.00

16-Jul-14 18.89 22.00

19-Sep-14 15.65 20.00

12-Nov-14 11.73 16.00

15-Dec-14 10.45 13.00

18-Dec-14 11.09 12.50

19-Feb-15 12.82 13.50

20-Feb-15 12.89 R

23-Apr-15 12.64 13.00 N

23-Jun-15 11.16 12.50

05-Aug-15 6.54 11.50

21-Sep-15 6.58 8.00

10-Nov-15 7.20 9.00

12-Jan-16 7.90 10.00

22-Feb-16 12.82 11.00

07-Apr-16 14.52 17.00 O

29-Jun-16 20.77 27.00

06-Dec-16 15.49 23.00

16-Feb-17 20.50 25.00

* Asterisk signifies initiation or assumption of coverage.

N EU T RA L

REST RICT ED

O U T PERFO RM

3-Year Price and Rating History for Detour Gold Corporation (DGC.TO)

DGC.TO Closing Price Target Price

Date (C$) (C$) Rating

18-Mar-14 11.50 12.00 N

23-Jun-14 14.97 15.00

16-Jul-14 13.78 16.00

30-Jul-14 12.45 14.50

11-Sep-14 10.43 14.00

23-Sep-14 9.21 11.25

03-Nov-14 6.68 10.00

11-Feb-15 11.56 15.00 O

08-Apr-15 11.83 16.00

03-Jun-15 13.95 17.00

04-Jun-15 14.06 17.50

21-Sep-15 13.85 18.00

15-Dec-15 14.69 19.50

26-Jan-16 16.50 21.50

07-Apr-16 22.68 29.00

08-Jun-16 30.45 35.00

29-Jun-16 32.74 47.00

07-Sep-16 33.00 45.00

02-Nov-16 21.23 35.00 N

06-Dec-16 18.49 26.00

13-Jan-17 17.38 21.00

* Asterisk signifies initiation or assumption of coverage.

N EU T RA L

O U T PERFO RM

Page 17: Credit Suisse Equity Research Mining Nuggets

3-Year Price and Rating History for Newmont Mining (NEM.N)

NEM.N Closing Price Target Price

Date (US$) (US$) Rating

21-Mar-14 24.55 26.00 N

31-Mar-14 23.44 25.00

16-Jul-14 25.22 26.00

23-Sep-14 23.99 27.00

12-Nov-14 18.46 23.00

15-Dec-14 17.92 21.00

11-Mar-15 22.24 24.00

08-Apr-15 22.08 26.00

27-Apr-15 25.59 30.00 O

09-Jun-15 24.41 R

22-Jun-15 23.95 30.00 O

23-Jun-15 24.13 29.00

21-Sep-15 16.63 22.00

10-Nov-15 17.46 25.00

07-Dec-15 19.75 26.50

15-Dec-15 18.40 25.50

12-Jan-16 17.01 26.00

18-Feb-16 25.07 27.00

07-Apr-16 27.96 37.00

29-Jun-16 37.69 49.00

20-Jul-16 39.29 51.00

13-Oct-16 34.81 53.00

06-Dec-16 33.02 51.00

02-Mar-17 33.60 47.00

* Asterisk signifies initiation or assumption of coverage.

N EU T RA L

O U T PERFO RM

REST RICT ED

3-Year Price and Rating History for SEMAFO Inc. (SMF.TO)

SMF.TO Closing Price Target Price

Date (C$) (C$) Rating

08-Aug-16 6.96 8.00 N *

13-Oct-16 5.19 7.50

06-Dec-16 4.08 6.00

13-Jan-17 4.87 6.50 O

01-Feb-17 4.88 6.25

* Asterisk signifies initiation or assumption of coverage.

N EU T RA L

O U T PERFO RM

3-Year Price and Rating History for Teck Resources Ltd (TECKb.TO)

TECKb.TO Closing Price Target Price

Date (C$) (C$) Rating

31-Mar-14 23.86 29.00 O

23-Jun-14 24.44 28.50

10-Oct-14 18.01 27.50

15-Dec-14 12.97 21.00

08-Apr-15 17.54 21.00 N

28-May-15 15.09 17.50

23-Jun-15 13.81 17.00

21-Sep-15 7.71 13.00

15-Dec-15 4.50 8.00

31-Mar-16 9.85 10.00

03-May-16 14.38 15.00

28-Jul-16 20.19 17.50

20-Sep-16 23.61 23.00

14-Oct-16 24.66 30.00 O

27-Oct-16 27.94 33.00

23-Nov-16 34.91 35.00

07-Dec-16 33.20 43.00

* Asterisk signifies initiation or assumption of coverage.

O U T PERFO RM

N EU T RA L

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark* over the next 12 months.

Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months.

Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractiv e, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s t otal return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin American and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12 -month rolling dividend yield. An Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR less than or equal to 5%. A Neutral may be assigned where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18 May 2015, ETR ranges for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July 2011.

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Not Covered (NC) : Credit Suisse Equity Research does not provide ongoing coverage of the company or offer an investment rating or investment view on the equity security of the company or related products.

Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

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Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.

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*An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

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Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)

Outperform/Buy* 45% (64% banking clients)

Neutral/Hold* 39% (59% banking clients)

Underperform/Sell* 14% (53% banking clients)

Restricted 2%

*For purposes of the NYSE and FINRA ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, a nd Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

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Target Price and Rating Valuation Methodology and Risks: (12 months) for Barrick Gold Corp (ABX.N)

Method: Our target price of US$25.00 for ABX is based on an even weighting of our $30.09 NAV valuation and $20.98 OpCFa valuation. Our NAV valuation is based on a 2.00x multiple applied to our $17.37/sh asset DCF, with net debt of $4.66/sh deducted at par. Our OpCFa valuation is based on 14x our 2017 OpCFa of $1.50/sh. Target P/NAV multiples range from 0.7 to 2.1 times for gold producers in the Canadian coverage universe. Our OpCFa is based on implied mine life and free cash flow generating ability. We rate ABX Outperform as we see its focus on a 15% ROIC as differentiated in the gold space and its focus on prudent capital allocation and debt reduction is likely to drive an improvement to our NAV estimate over time. ABX also has an attractive near term FCF yield. ABX's declining output and relatively high gross debt means that prudent capital allocation is critical for the future of the company.

Page 18: Credit Suisse Equity Research Mining Nuggets

Risk: We believe there are several risks to ABX's achievement of our US$25.00 target price and Outperform rating. ABX is subject to commodity price and foreign exchange risk as fluctuations in the gold, copper, silver and foreign exchange rates will impact profitability. ABX is subject to inflationary pressures particularly for fuel, consumables, equipment and labour. Fluctuations in ore grade or recovery rates or changes to the mining sequence would impact production and costs forecasts. ABX is exposed to development and permitting risk with respect to its development projects, in particular Pascua Lama. ABX is also exposed to political risk with regards to the permitting and tax rates applicable to its current mines and development projects. ABX had ~$10B in notional debt at Q4/15 and is unhedged vs. the gold price, a significant negative fluctuation in the gold price vs. our estimates could require the company sell assets or raise equity in the future to meet its debt obligations.

Target Price and Rating Valuation Methodology and Risks: (12 months) for Detour Gold Corporation (DGC.TO)

Method: Our target price of C$21.00 for Detour Gold Corporation is based on an even weighting of our $22.74 NAV valuation and $19.65 OpCFa valuation, rounded to the dollar. Our NAV valuation is based on 1.10x our DCF of C$19.54. We deduct corporate adjustments and net debt of (C$1.84) at par. Our OpCFa valuation is based on 20x our normalized OpCFa of C$1.14. Our OpCFa is based on implied mine life and free cash flow generating ability. We rate DGC Neutral due to uncertainty regarding its FCF inflection point and inconsistent operational delivery. Positively, the company owns a long life, large scale mine operating in Canada.

Risk: Primary risks to our C$21.00 target price and Neutral rating for Detour Gold include the price of gold varying materially from our forecasts, operational risk at individual mines, and risk to global economic growth and currencies. Detour Gold is also subject to inflationary pressures, particularly for fuel, consumables, equipment and labour. Fluctuations in ore grades, recovery rates or changes to the mining sequence could impact production and cost forecasts. Detour Gold is also exposed to development risk as it seeks to replace and expand reserves, and possibly develop new projects into mines.

Target Price and Rating Valuation Methodology and Risks: (12 months) for Newmont Mining (NEM.N)

Method: Our target price of US$47.00 is based on an even weighting of our $41.33 OpCFa valuation and $52.17 NAV valuation, rounded to the nearest dollar. We apply a 16x multiple to 2017 OpCFa of $2.58. Our NAV valuation is based on 2.00x our DCF of $27.90, we deduct net debt of ($3.63) at par. Our OpCFa multiple is based on implied mine life and free cash flow generating ability. NAV multiples range from 0.7 to 2.1 for producers in our coverage universe. We rate NEM Outperform due to (i) operational consistency which we expect to continue; (ii) track record of adding to reserves and NAV over time vs. peers; and (iii) Strongest balance sheet within the senior gold equities.

Risk: Primary risks to our $47.00 target price and Outperform rating for NEM are: 1. Actual gold price falls short of or exceeds our current forecasts, 2. Operating execution risk, 3. Unexpected cost pressures, 4. Political/social risks, 5. Corporate development/M&A risks as both a potential acquirer or acquiree.

Target Price and Rating Valuation Methodology and Risks: (12 months) for SEMAFO Inc. (SMF.TO)

Method: Our target price of C$6.25 for SEMAFO is based on an even weighting of our $6.15 NAV valuation and $6.44 OpCFa valuation, rounded to the half dollar. Our NAV valuation is based on 1.40x our DCF of C$3.74. We add/deduct corporate adjustments and net debt of C$0.90 at par. Our OpCFa valuation is based on 15x our blended 2017/2018 OpCFa of C$0.43/sh. Our OpCFa is based on SMF's implied mine life and free cash flow generating ability. We rate SMF Outperform as offers peer leading production growth, low costs, operational consistency, a strong capital allocation track record and a strong balance sheet. Additionally, SMF's valuation relative to peers is now more attractive following lagging share price performance in 2016.

Risk: Primary risks to our C$6.25 target price and Outperform rating for SEMAFO include the price of gold varying materially from our forecasts, operational risk at individual mines, and risk to global economic growth and currencies. SEMAFO is also subject to inflationary pressures, particularly for fuel, consumables, equipment and labour. Fluctuations in ore grades, recovery rates or changes to the mining sequence could impact production and cost forecasts. SEMAFO is also exposed to development risk as it seeks to replace and expand reserves, and possibly develop new projects into mines. SEMAFO has elevated geopolitical risk as its assets are all located in Burkina Faso.

Target Price and Rating Valuation Methodology and Risks: (12 months) for Teck Resources Ltd (TECKb.TO)

Method: Our TP of C$43/share for Teck Resources Ltd. (TECK) is based on 1.1x P/NAV based on our NAVPS (C$34.65) and 5.5x our FY17/18 EV/EBITDA (enterprise value/earnings before interest, taxes, depreciation and amortization). We rate TECK Outperform as we expect the coking coal market will remain relatively tight over the next two years, with a supply response from swing producers unlikely to materialize over a 6-12 month period.

Risk: Primary risks to our C$43 target price and Outperform rating for Teck Resources Ltd. (TECK) are financial and commodity price risk (primarily coking coal, copper, and zinc), currency risk (US$/CAD$), as well as mining and operating risk at the operations.

Please refer to the firm's disclosure website at https://rave.credit-suisse.com/disclosures for the definitions of abbreviations typically used in the target price method and risk sections.

See the Companies Mentioned section for full company names

The subject company (ABX.N, DGC.TO, NEM.N, TECKb.TO, EGO.N, FM.TO, CCO.TO, AEM.N, THO.TO, CG.TO, FNV.N, AUY.N, HBM.TO, LUN.TO, TRQ.TO, SSO.TO, GG.N, IAG.N, AGI.N, KGC.N, EDV.TO, TXG.TO, NST.AX, NCM.AX, PRU.AX, GLEN.L, SBM.AX, RRL.AX, EVN.AX, OGC.AX, RIO.L) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.

Credit Suisse provided investment banking services to the subject company (NEM.N, EGO.N, CCO.TO, CG.TO, FNV.N, TRQ.TO, GG.N, IAG.N, KGC.N, GLEN.L, RRL.AX, EVN.AX, RIO.L) within the past 12 months.

Credit Suisse provided non-investment banking services to the subject company (CG.TO) within the past 12 months

Credit Suisse has managed or co-managed a public offering of securities for the subject company (CCO.TO, CG.TO, IAG.N, GLEN.L, RRL.AX, EVN.AX) within the past 12 months.

Credit Suisse has received investment banking related compensation from the subject company (NEM.N, EGO.N, CCO.TO, CG.TO, FNV.N, TRQ.TO, GG.N, IAG.N, KGC.N, GLEN.L, RRL.AX, EVN.AX, RIO.L) within the past 12 months

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (ABX.N, DGC.TO, NEM.N, SMF.TO, TECKb.TO, EGO.N, FM.TO, CCO.TO, AEM.N, THO.TO, CG.TO, FNV.N, AUY.N, PDN.TO, HBM.TO, LUN.TO, TRQ.TO, SSO.TO, GG.N, CS.TO, IAG.N, AGI.N, GSS.A, KGC.N, BTO.TO, EDV.TO, TXG.TO, OR.TO, NST.AX, NCM.AX, PRU.AX, GLEN.L, SBM.AX, RRL.AX, EVN.AX, OGC.AX, RIO.L) within the next 3 months.

Credit Suisse has received compensation for products and services other than investment banking services from the subject company (CG.TO) within the past 12 months

As of the date of this report, Credit Suisse makes a market in the following subject companies (NEM.N, AUY.N, GG.N, KGC.N).

As of the end of the preceding month, Credit Suisse beneficially own 1% or more of a class of common equity securities of (IAG.N, NST.AX, SBM.AX, RRL.AX).

Credit Suisse beneficially holds >0.5% long position of the total issued share capital of the subject company (NEM.N, PRU.AX).

Credit Suisse beneficially holds >0.5% short position of the total issued share capital of the subject company (SBM.AX, RRL.AX).

Credit Suisse has a material conflict of interest with the subject company (NEM.N) . ‘Noreen Doyle, an employee of Credit Suisse, is a Non-Executive Director of Newmont Mining Corporation.’

Credit Suisse has a material conflict of interest with the subject company (CG.TO) . Credit Suisse acted as financial advisor to Centerra Gold (CG.TO) on the acquisition of Thomson Creek Metals Company (TCM.TO).

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Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares.

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The following disclosed European company/ies have estimates that comply with IFRS: (CCO.TO).

Credit Suisse has acted as lead manager or syndicate member in a public offering of securities for the subject company (DGC.TO, FM.TO, CCO.TO, THO.TO, CG.TO, FNV.N, AUY.N, GG.N, IAG.N, AGI.N, KGC.N, GLEN.L, RRL.AX, EVN.AX) within the past 3 years.

Principal is not guaranteed in the case of equities because equity prices are variable.

Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that.

This research report is authored by:

Credit Suisse Securities (Canada), Inc. .. Anita Soni, P. Eng., CFA ; Ralph M. Profiti, CFA ; Robert Reynolds, CPA, CA, CFA ; Yan Truong, CFA

To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important disclosures regarding any non-U.S. analyst contributors: The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research analysts listed below may not be associated persons of CSSU and therefore may not be subject to the FINRA 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Credit Suisse Securities (Canada), Inc. .. Anita Soni, P. Eng., CFA ; Ralph M. Profiti, CFA ; Robert Reynolds, CPA, CA, CFA ; Yan Truong, CFA

For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at https://rave.credit-suisse.com/disclosures or call +1 (877) 291-2683.

Page 19: Credit Suisse Equity Research Mining Nuggets

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Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments.

When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS as a seller, you will be requested to pay the purchase price only