Breakout based upon fundamentals, page-13

Hi All

Thanks so much for that great post Bahar!  Lets get the old envelop out again and our research papers and work out some more rough numbers for SHE.

The Protean wave energy device, what is it worth to SHE's SP at this time?  It's really hard to work out but as we all know the potential is stunningly enormous all going well.  One very rough way to look at it might be on market cap.  CWE's MC is $104 million, SHE's at present is currently $22 million.  Without getting into a debate about the two projects how about we say that to have an equivalent market cap to  CWE the SHE's SP would need to be around 5x (e.g. 5 x 2.6c) which equals 13c.

Now lets have another look at the high grade Uranium/Vanadium project in Korea.  I will not at this stage account for any Korid share in the project as they have to deliver the 36,000 metres of core before any legal entitlement to their share in the project.  I accept the excellent post from Randoi which advised that the metallurgy for this project is cheaper than that used by a major such as PDN who have a production cost of $30 per pound and that, in addition, the Vandium is extracted as a by product and therefore free.  Let's say then for arguments sake a production cost of $25 per pound. We have 66 million pounds of U308 at a high grade cut of 329pm at current market price of $40 lb minus production cost of $25 per pound giving us $990 million.  The Vanadium V205 is 17.3 million pounds at a high grade cut off of 3,186 ppm.  The current market is $20 lb which will be extracted free giving us $346 million for the Vanadium. The project is therefore potentially worth in total $1.336 billion before tax and minus capex start up costs. Also the above calculation uses a record low U308 price which is already moving up and experts suggest that demand for vanadium may also increase significantly.  Now what is this project's value for shareholders?  We have 848 million shares on offer and a project worth $1.336 billion.  That is a $1.57c per share before tax and capex.  How about we cut this figure in half to account for tax and capex leaving us 78.5c per share?

As a very rough guide to the potential worth of the two projects if we add the 13c from the unique wave energy project to the 78.5c per share we have for the U308/V205 project we have a total of 91.5c.  My very roughly calculated SHE SP prediction based upon project value is therefore 91.5c per share at this current time.  We have also not factored in the enormous SP potential on future world wide sales of the Protean wave energy device.  The other bullish factor to keep in mind is that the market for wave energy in the US may possibly bring an avalanche of high net worth US investors into SHE, sooner rather than later.

I hope you'll excuse my musings here and the very rough calculations and costs used.  Its just very interesting to speculate on what SHE could actually be worth.

This is all IMO and best wishes to all holders.

Regards,

Chilloutman