valuation rule of thumb, page-16

This is for 10cents. How to work out the divisor for another company, eg, DYL

Number of shares for DYL = 1,108 million
Exchange rate = 0.80
Divisor = shares * exchange rate / US$ per pound

@ US$6/lb, divisor is 1,108 * 0.80 / 6 = 150 (rounded)
@ US$9/lb, divisor is 1,108 * 0.80 / 9 = 100 (rounded)
etc.

So, for DYL, rule of thumb becomes:

@ US$6/lb - divide Mlbs by 150
@ US$9/lb - divide Mlbs by 100
@ US$12/lb - divide Mlbs by 75

Example: DYL's last quarterly report gave 53.8 Mlb JORC resource of uranium. Using US$6 per pound in the event of a takeover, what A$ share price would that be?

Answer: Share price should be 53.8 Mlb / 150 = A$0.36

I hope that helps you work out what the rule of thumb should be for any other uranium company. Sorry I was late back last night from work too tired to do it then.

Back to EXT, now...