Valuation and RisksIn valuing Belo Sun, we use forward curve pricing and discounted cash flow analysisdiscounted at a project WACC of 8.6%. In our Base Case, on a fully funded basis, we see814M shares outstanding, generating a project NAVPS of $0.31 and a corporate NAVPSof $0.76. Applying a 1.0x P/NAV multiple generates a target NAVPS of $0.76 supportinga rounded target price of C$0.80, increased from $0.70. The 264% projected return
continues to support a SPECULATIVE BUY rating. We highlight Belo Sun’s reliance oncapital markets and the ability to permit Volta Grande as key risks to our valuation andtarget.