Mirabaud Securities in the UK have this morning initiated coverage of KAH. They have an NAV for it of 122p and rate it "buy". Most of this is based on applying the multiple of US$5.76/lb from the Forsys sale to the current resources attributable to KAH of 53Mlb.
However, the note also says: "The recent C$579m bid approach for Forsys Metals values its resource (289Mt @ 127ppm for 81Mlb U3O8) at US$5.76/lb U3O8. Crucially given the scale, grades and strategic proximity to Rio Tinto’s operations, we believe Extract’s Rossing South deposit could have a significantly higher value in the region."
and:
"Importantly the Rossing South deposit offers substantial exploration upside. The current 108Mlb U3O8 Rossing resource is defined from drilling over 2.4km of the deposit’s 15km strike length with the expected 100Mlb increase due later this year defined from drilling over a further 2km of the deposit’s strike length."
and:
"We also highlight the acquisition of a 49% share in Areva’s Trekkopje project in Namibia (to include the off-take of 50% of the mine’s uranium production) by China Guangdong Nuclear Power Corporation. We believe CGNPC may have paid approximately US$750m for its holding in the recent acquisition. This sum would equate to an in-ground valuation of around US$14.6/lb U3O8 resource at the project."
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