Continental Precious Minerals is a Canadian exploration company focused on mineral properties in Sweden. It has defined an inferred resource at its flagship Viken property of over 2.8 billion tonnes containing uranium, nickel, molybdenum, and vanadium. Recent testing demonstrated recovery rates over 90% for some metals. Management owns about 9% of shares and compensation is weighted towards stock and options. The stock performance has outperformed peers over 3 months but underperformed over longer periods.
2. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Business of the Company
Continental Precious Minerals Inc. is a Canadian exploration company with a focus on Sweden. Since 2005, it has
concentrated on its alum shale deposits where it has discovered a large polymetallic mineral deposit at its flagship
property, called MMS Viken, and defined a NI 43-101 compliant resource. Continental has completed preliminary
metallurgical test on samples of the deposit, which have demonstrated recovery rates of 90 percent for some
metals. In August 2010, Continental announced the completion of testing for a preliminary economic assessment
with evaluation of the results to be completed before the end of 2010.
Overview of Projects
Continental Precious Minerals Inc. has 69 mineral exploration licences throughout the country. Thirteen licences are
for conventional hard rock uranium deposits and prospects and 55 cover multi-mineral sediment deposits and
prospects hosted in alum shale formations. The company’s current focus is the advancement of its Viken licence,
located near the town of Östersund in central Sweden.
The Viken Licence
Located in the central part of Sweden approximately 500 kilometres south of the Arctic Circle, the property subject
to the Viken licence covers 677 hectares with a large multi-mineral deposit containing uranium, nickel, molybdenum
and vanadium. On March 19, 2009 the company filed an NI 43-101 technical report on MMS Viken, entitled “Third
Updated Technical Report on Viken MMS Licence Area, Jamtland, Kingdom of Sweden.” As seen in the table below,
the MMS Viken Licence and portions of adjacent Company licences have an inferred resource estimate of 2,831
billion tonnes containing 1 billion pounds of uranium oxide (0.33 lbs/ton), 2 billion pounds of nickel (0.65 lbs/ton),
17 billion pounds of vanadium pentoxide (5.36 lbs/ton) and 1.5 billion pounds of molybdenum (0.49 lbs/ton). The
resource estimate also includes an indicated resource of 24 million tonnes containing 10 million pounds of uranium
oxide (0.38 lbs/ton), 17 million pounds of nickel (0.63 lbs/ton), 15 million pounds of molybdenum (0.56 lbs/ton) and
162 million pounds of vanadium pentoxide (6.25 lbs/ton).
U3O8 V2O5 Mo Ni
INDICATED tonnes 23,610,000 23,610,000 23,610,000 23,610,000
RESOURCE
Grade (lbs/ton) 0.38 6.25 0.56 0.63
Grade (%) 0.019 0.313 0.028 0.032
lbs metal/oxide 9,944,000 162,751,000 14,678,000 16,500,000
U3O8 V2O5 Mo Ni
INFERRED 2,830,757,000 2,830,757,000 2,830,757,000 2,830,757,00
tonnes
RESOURCE 0
Grade (lbs/ton) 0.33 5.36 0.49 0.65
Grade (%) 0.017 0.268 0.024 0.032
lbs metal/oxide 1,037,661,000 16,716,126,000 1,516,487,000 2,015,742,00
0
(1) Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title, taxation, and socio-political, marketing or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient
exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will
result in upgrading them to an indicated or measured mineral resource category.
(3) The mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council December 11, 2005.
3. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Management
Ed Godin, Chief Executive Officer, President
One of the founders of Continental and a veteran of mining finance, Mr. Godin has extensive knowledge and
background in the mining industry. For over 20 years, he has participated in $75 million in financings for
exploration projects.
Rui Andrade, CGA, Vice-President and CFO
Mr. Andrade has over 30 years of finance and accounting experience. Since August 2005, Mr. Andrade has been
the corporate controller for the Triple M Metal group of companies, one of North America’s largest processors of
ferrous and non-ferrous metals, with business interests in Canada, the United States, Europe, Asia and Mexico.
Michael Bromley-Challenor, Executive VP/Director of Exploration and Development
A leading expert in uranium and oil shale, Mr. Bromley-Challenor has 35 years of experience as an exploration
consultant in Sweden and related projects in Europe. Since early 2005, Mr. Bromley-Challenor has been
responsible for the company’s project management in Sweden.
Gustav Åkerblom, Executive VP/Director of Environmental Management
Before joining Continental as a consultant in 2007, Mr. Åkerblom held progressively senior positions with the
Swedish Radiation Protection Authority (SSI) and is a leading radiation expert. While with the SSI, he served as
Senior Geologist and Senior Radiation Officer, responsible for supervision of radon and natural radiation.
Directors
Patricia Sheahan, Chairman of the Board
Ed Godin
Gerard Osika
Herb Dhaliwal
Corporate Information
Investor and Media Relations
President and Chief Executive Officer
Ed Godin
Tel: (416) 805-3036
Email: godine@rogers.com
http://www.czqminerals.com
COMPARABLE COMPANIES
Company Ticker Exchange
Commander Resources ........ CMD ............ TSX-V
Mega Uranium .................... MGA ............ TSX
Western Uranium ................ WUC ........... TSX-V
4. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Stock Market Performance Rating 2.4
Stock Market Returns 2,000,000 $8.00
1,800,000
Return Percentile Rating $7.00
Three Months 30% 82% 4.1 1,600,000
Six Months (16.7%) 25% 1.3 $6.00
1,400,000
Stock Price
1 Year 40% 95% 4.7
Volume
$5.00
3 Years (CAGR) (36.8%) 1% 0.0 1,200,000
5 Years (CAGR) (2.2%) 37% 1.8 1,000,000 $4.00
800,000
Market Data 600,000
$3.00
Price $0.60 $2.00
Mkt Cap (Mil) $30.97 400,000
Shs Outstanding (Mil) 51.62 200,000
$1.00
Dividend Yield % 0.0%
Avg Vol Last 3mos. (000's) 103.10 - $-
2005
2006
2007
2008
2009
2010
P/E (TTM) NA
Insider Ownership Rating 2.1
Value of Shares and Options Percent of Ownership
Shares Options Total Value Rating Percent Rating 9.1% Insiders
* Adjusted 10.1% > 10% Holders
# of # of $ Value if Adjusted $
$ Value $ Value if Rating Percent of Rating 80.8% Other
Shares Options Exercised Value
Exercised (Add all) Mkt. Value (Add all)
Edward Godin
1,377,817 $826,690 2,640,000 $1,584,000 $792,000 $1,618,690 0.6 5.2% 1.0
President and CEO
Rui Andrade Sep-10
- $0 - $0 $0 $0 0.0 0.0% 0.0
CFO
Jul-10
Other Officers
195,000 $117,000 535,000 $321,000 $160,500 $277,500 0.1 0.9% 0.2 May-10
Board of Directors & Other Mar-10
Executives (excl. CEO)
355,000 $213,000 2,350,000 $1,410,000 $705,000 $918,000 0.4 3.0% 0.6
Jan-10
> 10% Holders Nov-09
4,724,800 $2,834,880 900,000 $540,000 $270,000 $3,104,880 10.1% 2.0
(For info only) Sep-09
Total (excl. >10% Holders) $3,991,570 $3,855,000 $1,927,500 $5,919,070 1.1 9.1% 1.8 0% 20% 40% 60% 80% 100%
(Max of 4) (Max of 4) CEO CFO
Other Officers Directors
> 10% Holders Public Float
* Adjusted $ Value of Options is 50% of their full value if exercised to account for volatility. Furthermore, our view is that shareholders would rather management owned shares vs. options
Add: Compensation Type
Category Rating Addition Percent of Compensation
Share and Total Perform- Share and
Salary Perform- Unit Option All Other Comp. ance Unit Option
ance Bonus Awards Awards Comp. Bonus Awards Awards
14.8%
Edward Godin Salary
$144,000 $516,461 $107,000 $767,461 0.25 30.0% 0.0%
President and CEO Bonus
Rui Andrade Shares & Units
$273 $20,000 $20,273 0.25
CFO Options
Michael Bromley-Challenor All Other
$18,400 $163,636 $182,036 0.25
EVP Exploration and Development
55.2%
Total $144,000 $0 $0 $535,134 $290,636 $969,770 0.00 0.00 0.25
(Max Score)
Bonus: Net Buying/Selling Last Six Months
Insider Holdings Beginning and Ending Value
Transactions
Adjusted Share and
$7,000,000
Rating $6,000,000
Option Value
Buying Selling Net Bonus $5,000,000
$4,000,000
Edward Godin, President and CEO $0 $0 $0 0.00 $3,000,000
Rui Andrade, CFO $0 $0 $0 0.00 $2,000,000
Other Officers $0 $0 $0 0.00
$1,000,000
Board of Directors (excl. CEO) $0 $0 $0 0.00
$-
> 10% Holders (info only) $0 $0 $0
Total (excl. >10% Holders) $0 $0 $0 0.00 (Total Score) Beg Trans- Ending
Value actions Value
5. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Resource Assessment Rating 3.9
Assessment Phase
Viken MMS License Area
1 1 1 1
14,000,000
1 1 1 1
12,000,000
1 1 1 1
1 1 1 1
10,000,000
1 1 1 1
8,000,000
1 1 1 1
6,000,000 11,553,
0 0 0 0
679
0 0 0 0
4,000,000
0 0 0 0
2,000,000
0 0 0 0
Legend -
111,516
- - - - - - - - -
Proven - - - - - -
Probable Other Inferred Other Inferred Other Inferred Other Inferred Other Inferred
Measured
Indicated '000 Pounds of Uranium
Inferred
Assessment Phase Rating 1.0
Size Assessment Resource Classification of Primary Project (Viken MMS
Proven Probable Measured
Primary Mineral 0% 0% 0%
Resource Primary Mine
Mine Name Equivalent Resource Size
Location Mineral Type Proven
Including Byproducts Indicated
1%
Probable
Viken MMS License Area Finland Uranium Open Pit ##### '000 Pounds Measured
Indicated
Inferred
Total Gold equivalent size 455,375 '000 Pounds
Inferred
99%
Note: Resource size is inclusive of inferred resources. Please see Assessment Phase above for categorical breakdown by project.
Size Assessment Rating 5.0
Ore Grade Assessment
Resource Primary Mine Primary Mineral Grade Primary Mineral Grade Equiv. incl. Byproducts Average
Mine Name Equiv. Rating
Location Mineral Type
Inferred Indicated Measured Probable Proven Inferred Indicated Measured Probable Proven Grade
Viken MMS License Area Finland Uranium Open Pit 0.02 0.02 0.19 0.21 0.19 5.0
Note: Grades for primary and byproduct minerals are scored pro forma as described in the NI 43-101 technical report without accounting for recovery rates which in some cases could be significantly below 100%.
Ore Grade Assessment Rating 5.0
Regional Policy and Mineral Potential
Source: Continental Precious Minerals Corporate Presentation
Fraser Institute Survey Scores Out of 100
Policy Potential > 82 Mineral Exploration Licences
Mine Name Resource Location Survey
Results Rating > Continuing to increase land holdings
Viken MMS License Area Sweden 93.8 4.7
Note: Sweden was not in the survey. > Sufficient capital to self-fund exploration
Finaland was used as a proxy for Sweden.
Weighted Average 93.8 4.7
Source: Fraser Institute; www.fraserinstitute.org
Since 1997, The Fraser Institute has conducted an annual survey of metal mining and exploration companies to
assess how mineral endowments and public policy factors such as taxation and regulation affect exploration
investment. Survey results represent the opinions of executives and exploration managers in mining and mining
consulting companies operating around the world. The survey now includes data on 51 jurisdictions around the
world, on every continent except Antarctica, including sub-national jurisdictions in Canada, Australia, and the
United States.
Regional Policy and Mineral Potential Rating 4.7
6. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Balance Sheet Analysis Rating 4.5
Short-Term Liquidity Quadrant 3: Quadrant 1:
"RECOVERING" "OPTIMAL"
$ 1.0
+ VE
$-
9-Aug
Quadrant Rating May-09 Aug-09 Nov-09 Feb-10 May-10 ($1.0) 10-May
Cash Flow (mil)
9-Nov
Working Capital $ 25.9 $ 25.2 $ 24.3 $ 23.6 $ 22.6
Cash Flow Ops (Q in mil) ($0.9) ($0.2) ($0.4) ($0.5) ($0.3)
($2.0) 10-Feb
Cash Flow Ops (Ann Q's in mil) ($3.5) ($0.8) ($1.4) ($1.9) ($1.0)
Quadrant Rating 3.0 3.0 3.0 3.0 3.0 ($3.0)
9-May
Addition to Quadrant Rating ($4.0)
Our methodology accounts for the 'nearness' to improving or worsening a Company's quadrant
ranking based on current cash generation/burn rate and working capital position. The Company
($5.0)
- VE
is DRAWING DOWN their working capital. At the current cash burn rate the Company's working
($5) $- $5 $ 10 $ 15 $ 20 $ 25 $ 30 $ 35
capital will be $0 in 262 month(s). Quadrant 2:
Quadrant 4:
"URGENT" "DRAWING DOWN"
Add: 1.5 - VE Working Capital (mil) + VE
Short-Term Liquidity Rating 4.5
Debt to Equity
May-09 Aug-09 Nov-09 Feb-10 May-10
Equity Utilities
Telecom
Common Stock Equity
Number of Companies
$ 36.6 $ 36.3 $ 35.9 $ 35.6 $ 35.3
Materials
Total Equity $ 36.6 $ 36.3 $ 35.9 $ 35.6 $ 35.3
Info Tech
Industrials
Debt and Equivalents Health Care
Pref. Securities of Sub Trust - - - - - Energy
Cons Staples
Pref. Equity Outside Stock Equity - - - - -
Cons Disc
Preferred Stock Equity - - - - -
Minority Interest (Bal. Sheet) - - - - -
Short-Term Debt - - - - -
Long-Term Debt - - - - -
Capital Lease Obligations - - - - -
Total Debt and Equivalents $ - $ - $ - $ - $ -
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
Debt to Equity 0.00 0.00 0.00 0.00 0.00
Debt to Equity Rating NA Low Risk Debt to Equity High Risk
Debt to Equity Rating NA
Interest Coverage
May-09 Aug-09 Nov-09 Feb-10 May-10 1.0 x
EBIT 0.9 x
Quarterly ($1.4) ($0.3) ($0.5) ($0.8) ($0.4) 0.8 x
TTM
Interest Coverage
($2.8) ($2.9) ($2.9) ($3.0) ($2.0) 0.7 x
0.6 x
N/A
Interest Expense
0.5 x
Quarterly - - - - -
TTM $ 0.0 $ 0.0 - - - 0.4 x
0.3 x
Interest Coverage 0.2 x
Quarterly #N/A #N/A #N/A #N/A #N/A
0.1 x
TTM #N/A #N/A #N/A #N/A #N/A
0.0 x
May 09 Aug 09 Nov 09 Feb 10 May 10
Interest Coverage Rating
Qtrly Interest Coverage Rating Quarterly
TTM Interest Coverage Rating TTM
Interest Coverage Rating N/A
7. investorSCOREcard
Continental Precious Minerals Inc. (CZQ-T)
Valuation Rating 4.8
Premium to Invested Capital
(Lower numbers receive higher rankings)
Premium to Invested Capital on Rolling
3000%
Quarterly (TTM) May-09 Aug-09 Nov-09 Feb-10 May-10
Working Capital (Excl S.T. Debt) $ 25.9 $ 25.2 $ 24.3 $ 23.6 $ 22.6 2500%
Long-Term Net Fixed Capital $ 10.7 $ 11.1 $ 11.7 $ 12.0 $ 12.7
Net Invested Capital $ 36.6 $ 36.3 $ 35.9 $ 35.6 $ 35.3 2000%
Market Value of Equity $ 23.1 $ 30.8 $ 48.8 $ 31.5 $ 28.4 1500%
Debt and Equivalents
Basis
$ - $ - $ - $ - $ -
TTM
Enterprise Value $ 23.1 $ 30.8 $ 48.8 $ 31.5 $ 28.4 1000%
Premium to Invested Capital -36.7% -15.1% 35.9% -11.7% -19.5% 500%
Premium to Invested Capital Rating 5.0 5.0 4.3 5.0 5.0
0%
(500%)
Dec Dec Nov Nov Nov Nov Nov Nov Nov Nov Nov
99 00 01 02 03 04 05 06 07 08 09
Premium to Invested Capital Rating 5.0
Price to Book (P/Book)
(Lower numbers receive higher rankings) 35.0 x
Annual (Fiscal Year) May-06 May-07 May-08 May-09 May-10
* Price $ 0.45 $ 0.60 $ 0.95 $ 0.61 $ 0.55 30.0 x
Book Equity Per Share $ 0.50 $ 0.76 $ 0.77 $ 0.71 $ 0.68
P/Book on Quarterly
25.0 x
Annual P/Book
Annual P/Book Rating 4.8 4.8 4.8 4.8 4.8 20.0 x
Basis
Quarterly May-09 Aug-09 Nov-09 Feb-10 May-10 15.0 x
* Price $ 0.45 $ 0.60 $ 0.95 $ 0.61 $ 0.55
Book Equity Per Share $ 0.71 $ 0.71 $ 0.70 $ 0.69 $ 0.68 10.0 x
Quarterly P/Book 0.6 x 0.8 x 1.4 x 0.9 x 0.8 x 5.0 x
Quarterly P/Book Rating 4.5 4.4 4.0 4.4 4.4
0.0 x
Dec Dec Nov Nov Nov Nov Nov Nov Nov Nov Nov
99 00 01 02 03 04 05 06 07 08 09
Price to Book (P/Book) Rating 4.6
Market Implied In Situ Valuation
Market Implied In Situ Valuation
$0.30
Market Implied In
Resource Size at Certainty Levels of Situ Valuation per $0.25
Property (Primary Mineral) Equivalent '000 Pounds resource unit (C$)
$0.20
Viken MMS License Area (Ura Proven + Probable NA
per Unit
$0.15
Including Measured & Indicated 111,516 $0.28
Including Inferred 11,665,195 $0.00 $0.10
$0.05
$0.00
Proven + Probable Including Measured Including Inferred
& Indicated
NA
* Price - Delayed 60 days to reflect the fact the financial statements are publicly approximately 60 days after the last day of the reporting period. For the last period the most recent price is used.
8. investorSCOREcard
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