Gday Anzac Kiwi,
What I am saying is based on todays price, BLR is worth ,3 because that is where it is trading today, or otherwise known as the cost basis.
But cost is what we pay today, value is what we receive in the future. The value we will receive is the combined combination of WU + BLR, in my opinion. As I look at this, 1+1=4. Why?
1. WU has brown field and permitted mines that can have production in 2015.
2. WU has a 100,000 tonne stockpile that can be processed now.
3. WU has Glasier, who has access to all the law makers, industry experts, buyers of uranium (Exelon,etc).
4. BLR owns 24,5% of the HT area (in general). WU will have the financial muscle to fund the remaining $13,5 million required to go from 24,5% to 100%.
5. Glasier has guaranteed mill access at better rates and higher efficiencies than one would receive at White Mesa.
Ablation is an unproven mining process on a commercial scale, so it is a zero right now. A lot of time and money will be required to commercialise ablation on a large scale basis. WU has this money to commericalise ablation.
Once the scheme booklet is released, we should all see the value proposition and then the BLR should move higher (in my opinion) because people will see the value WU has. Clearly BLR management has seen the value in WU because they are recommending the deal.
Cait
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