For state enterprise, more concerned with supply rather than profits & capital gains for shareholders, BMN (162Mlbs) is a good buy.
With 207m shares on issue, BMN can be taken over at 78 cents per share or $1 per pound (AUS$162m). At current uranium prices, BMN is not a commercial play but is an excellent takeover prospect for state enterprise.
ACB is another good prospect with 158lbs (with potential to double). Like BMN, the low ACB grades result in relatively high capital capital costs in relation to profit that can be earned at current uranium contract prices.
ACB has 170m shares on issue. Takeover at 76 cents is $130m. Uranium is acquired for 82 cents per lb.
As for EXT, as current contract prices, my long term valuation is $19. I cannot see the major shareholders letting go of EXT for less that $15 per share. Takeover price would be $3.6 billion.
$3.6 billion for EXT v $300m for BMN + ACB together.
I cannot see EXT in their shopping list.
EXT Price at posting:
$7.29 Sentiment: LT Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)