Excellent results. Clearly identified where we need to be sinking the drill bit.
Very close to the Paladin owned Langer Heinrich mine, in an area known to be rich in Uranium (which has been proved up ourselves in some areas already on our tenements).
Paladin are way ahead of us of course, but sitting on a very tasty A$1.35bn Market Cap. That's roughly 20 X our current MC.
280 km of palaeochannels upstream of known deposits. Doesn't this dwarf the landholdings of others in the region? It looks that way looking from the maps, and in investor reports - "largest uranium tenement holder in Namibia."
Then we have the U-pgrade process to upgrade the ore grades and significantly reduce costs.
Surely there must have been discussions with Paladin over the use of this technology on a licensing / royalties basis?
Bearing in mind it can take 10+ years to start a Uranium mine, wouldn't it be sensible to start licensing U-pgrade like, NOW to get some cashflow?
Or are shareholders expected to wait patiently for a decade while the resources are proved up and a mine is funded and underway?
Is the strategy to shore up the deposit then sell it to an established player?
"Strategy:Acquire projects / tenements that meet a defined criteria
Exploration of large strategic tenement position
Value add through application of patented U-pgradeTM uranium beneficiation process"
All cool.
But where is the value for shareholders in the meantime? What are triggers for SP appreciation?
I can't see us getting any of these deposits to the mining stage, unless there's massive dilution along the way.
I guess like when investing in any other junior explorer, we're waiting on the resources / reserves to be proved up first of all with an extensive drilling campaign, and then take things from there. The SP should naturally go up as market confidence in the resource does, and the realization hits there's going to be a massive shortfall of Uranium supply over the next 10 - 20 years.
It just seems like such a wasted opportunity with Murray Hill saying he wants to keep the technology inhouse for our own benefit.
That's all very well, but it will be 10 years away before you can make use of it with that strategy.
Or can someone with more Uranium knowledge than me correct me please?
My strategy (amateur hour) would be:
- Proving up the reserves and selling the Namibian tenements to the highest bidder (Paladin?).
- Switching emphasis to becoming more of a technology company licensing U-pgrade
globally.
- Developing the Australian tenements.
Heisenberg63 does that look about right?
(20min delay)