company valuation?

Copy of post 07/06/09 from http://www.iii.co.uk/investment/detail/?display=discussion&code=cotn%3AFTE.L&threshold=0&it=le&action=detail&id=4931125

Re: IB - Momentum - Company Valuation

This is what i originally posted:

Been thinking about this based on its assets:

Guinea -
Firawa (5km long) resource expected within 4 weeks the project most likely to go into mine status first. Having had a look at the early results from drilling and i am no expert this could end up being a 40 to 60mlb U308 asset. The first resource estimate will not stipulate this as they have still got to take it further East and West.

Bohoduo (12km long) - U308 in play but nothing yet known for certain. Drilling results not published as yet. Let's assume not as good as Firawa (15mlb)

Sesse - nothing yet known

Mauritania -
The Uramin JV prospect could well deliver the 60-80mlb U308 that will give Areva the opportunity to JV. Knowing Areva it is incredibly likely that this will produce the necessary resource upgrade to initiate the Areva option.

Australia -
Two Copper assets probably deemed non core and likely to be sold off when the opportunity arises.

So potentially 115mlb to 155mlb across three prospects. At A$6lb in the ground you could put a value of A$690M to A$1bn.

If this was correct then you would have a market cap of £345 to £500m. which is 12 to 20 times greater than today!!!

And below is from the quarterlu update:

Uranium Exploration – Mauritania
· Geophysical ground surveys undertaken at Bir En Nar and at several locations near Bir Moghrein – further work to be carried out this Quarter.
· 6,000m diamond drilling programme aimed at delineating initial JORC-code compliant uranium resource planned to commence in July 2009.

So we have some more news in the second half about Mauritania/Areva JV.

IB