Peter Grandich

• AMC has now increased its private landholding by ~40%. Including the 71 acres of patented land that host the Kay Mine Deposit, the acquisition increases AMC’s total holdings of private and patented land to 224 acres.
• The acquisition of the property significantly de-risks the permitting process when AMC decides to proceed to production decision. The steps required for permitting on private land, relative to BLM land, are likely to be less stringent.
• Additionally, the property is already zoned as commercial. It is in a flat topography and “disturbed” area, located behind a cliff. Hence any infrastructure located there would not affect the viewshed, especially from the nearby town. It also would potentially not constitute a new disturbance.
• The property is contiguous with a 107 acres of patented land AMC acquired in January 2021. Collectively, AMC’s private landholding gives the company sufficient and suitable ground where it can place future mine infrastructure.
• The over 150-acre private land footprint could potentially accommodate infrastructure required for 3,000tpd to 6,000tpd milling rate (between 1.0MMtpa to 2.0MMtpa).
• With over $44MM of cash in hand, as of June 30, 2023, AMC is well funded to complete its currently ongoing exploration programs and acquire additional land.

Valuation: AMC is trading at ~0.18x P/NAV. Our valuation is now based on a conceptual minable resource of 20MMt, through a milling rate of 1.6MMtpa and 80% base metal recovery and 60% for precious metals. We use a 0.70x NAV multiple, a discount rate of 7% and corporate adjustments to derive our price target. Our assumptions are informed by AMC’s exceptional exploration success thus far.  We maintain a BUY and a 12-month target price of $10.50 per share.

Catalysts

• Continuous drill results through FY23 from ~1,250m Phase 2 drilling program and 76,000m Phase 3 drilling.
• Potentially more permitting at Central and Western targets.
  • Expand permitting and start EPO.
• Resource modeling underway & MRE.
• General and continued exploration results through 2023.
• Potential M&A at Sugarloaf Peak.
• Further metallurgical tests.