Integra Resources (ITR) - Low Cost, High Margin Oxide Heap Leach

Introduction and Background:

1. Integra Resources, led by Jason Kossek, is a precious metals development company focusing on near-surface, heap-leachable ounces in the Great Basin.
2. The company recently released a positive Preliminary Economic Assessment (PEA) for Wildcat Mountain View, which has been received favorably by the market.

Key Financials:

1. The reported after-tax NPV is $310 million with an IRR of 37%.
2. The all-in sustaining costs stand at $973 with an initial capex of $115 million, giving a capex to NPV ratio of 2.7 (industry average is around 1.3-1.5).

Strategic Focus:

1. Risk mitigation is central to the company's strategy, emphasizing the importance of acquiring permits as quickly as possible.
2. The company has multiple assets, with the Idaho project being the furthest advanced and thus a priority.
3. Exploration is also ongoing in Nevada, and the company values transparency, robust economics, and removing major showstoppers early in the process.

Partnerships and Shareholders:

1. Integra Resources has significant shareholders like Wheaton Precious Metals and BD Capital. Such partnerships offer project validation and reduce project financing risks.
2. The merger of two entities has saved over $2.5 million in GNA annually, making it more attractive for institutional investors.

Future Plans:

1. Key milestones for the company include a resource update, mind plan, exploration activities, and a feasibility study for Delamar by the end of the next year.
2. The stockpiles for Delamar, consisting of about 60 million tons, will play a significant role in the company's economic projections.

Integra Resources: A Promising Junior Gold Developer in Nevada's Great Basin

Integra Resources is a precious metals development company focused on advancing low-cost, high-margin oxide heap leach projects in Nevada's Great Basin. With a large resource base and robust project economics, Integra offers significant upside potential for investors.

Fast-Tracking Permitting at Flagship DeLamar Project

Integra's flagship project is the past-producing DeLamar gold-silver project in southwest Idaho. The project benefits from existing infrastructure, including a 2,300 ton per day mill, and sits on a district with over 1 Moz of high-grade underground mineralization and 2.5 Moz of low-grade oxide mineralization.

The company plans to submit a Mine Plan of Operations to regulators in 2022, which is akin to a feasibility study. The goal is to obtain permits within 2-3 years. Advanced baseline studies and community engagement aim to derisk and expedite permitting. The focus is on developing the oxide portion first given lower capex intensity and attractive margins.

Exploration Upside at Wildcat Project

In parallel, Integra is advancing exploration at the Wildcat project in Nevada. The recently released PEA outlined robust economics, including $310 million NPV and 37% IRR at $1,700/oz gold. The project could produce 200,000 ounces per year at all-in sustaining costs (AISC) of $973/oz over a 7.5-year mine life.

With the PEA complete, exploration can now aim to expand resources and the production profile. Importantly, 80% of resources that underpin the PEA are in the Indicated category, providing confidence in potential mine plans. Each additional 1 Moz discovered could boost after-tax free cash flow by $50 million.

Significant Value Upside for Investors

Integra Resources currently trades at about 0.1x NAV compared to peers at 0.5-0.9x NAV. Applying a 0.5x multiple to Integra's NAV of C$1 billion indicates potential for a 500% increase from the current C$90 million market capitalization.

Near-term catalysts include:

• Drill results expanding Wildcat resources
• Updated resource for DeLamar stockpiles
• Submitting Mine Plan for DeLamar
• Feasibility study for DeLamar by the end of 2023

Execution of these milestones over the next 12-24 months can unlock substantial value for investors.

Positioned as the Premier Junior Developer in Nevada's Prolific Mining Jurisdiction

Nevada is one of the world's best mining jurisdictions given permitting transparency, infrastructure access, skilled labor and proximity to end markets. As the largest undeveloped gold-silver resource base there not owned by a major, Integra Resources is positioned to become the premier junior developer in the region.

Strategic investors like Wheaton Precious Metals provide strong project validation. The merged entity also captures synergies and creates a single "one-stop" vehicle for institutions seeking leverage to Nevada upside.

Proven Team to Execute Ambitious Growth Plans

Integra's management has significant experience building and operating mines. As the largest shareholders, their interests are closely aligned with investors to maximize shareholder value.

The team is focused on systematic execution, transparently under-promising and over-delivering to the market. This contrasts with some juniors that promote big projects but ultimately fail to deliver.

Investor Takeaway

For investors seeking leveraged exposure to rising gold prices, Integra Resources presents an attractive investment opportunity:

• Large gold-silver resource base with exploration upside
• Robust project economics in a Tier 1 mining jurisdiction
• Clear path to production within 2-3 years
• Proven team with a track record of building mines
• Significant NAV upside versus comparables once execution milestones met

With its ambitious growth plans and value proposition, Integra is poised to emerge as the premier junior developer in Nevada's prolific Great Basin.

The Investment Thesis for Integra Resources

Leverage to Higher Gold Prices

With robust project economics based on $1,700/oz gold, Integra Resources offers leverage to potentially higher gold prices in the coming years. Each $100/oz increase in gold could significantly boost project NPVs and cash flows. This gives investors upside exposure.

Undervalued Compared to Peers

Trading at just 0.1x NAV, Integra is significantly undervalued relative to comparable gold developers at 0.5-0.9x NAV. As the company derisks projects and grows resources, the valuation gap should narrow, providing an opportunity for share price appreciation.

Near-Term Catalysts

Numerous near-term catalysts over the next 12-24 months, like exploration results, permitting milestones, and economic studies, can re-rate the stock higher. Investors buying at the current low valuation can benefit from this news flow.

Optionality

With a pipeline of projects at different stages, Integra Resources provides investors multiple shots on goal and flexibility. For example, they can monetize the DeLamar project to fund Wildcat or focus on developing Wildcat if DeLamar permitting faces delays.

Proven Management

Integra's technical team has successfully built mines before, providing confidence in their ability to execute projects on time and on budget. The CEO/Founder is a large shareholder, aligning his interests with those of investors.

Integra Resources offers investors an attractive risk/reward proposition, especially at the currently discounted valuation, to benefit from rising gold prices and near-term share price catalysts. The experienced team and strong project pipeline further increase the investment appeal.

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