short sighted, page-4

Numbers:

Areva took a 10.6% stake at 18.5c when we only had 33.4Mlbs uranium.

Our resource has increased 120% with a further upgrade to 100Mlbs highly likely in the short term given the recent news regarding further extensions to our deposit.

Directors have recently put options in place at 21c.

Our U308 is currently valued at US$0.49/lb. The industry mean is 8-9 times that at over $4/lb, and that is while spot price languishes at $41 ... one third of its value just 24 months ago.

As for bad news:

It's clear that the optimal heap leach scenario has taken John Young and his team a little by surprise as SRK's preferred economic model, as existing metallurgy was largely conducted with a view to agitated tank leach.

But this does NOT mean that our ore is any less economical.
It DOES mean that Marenica needs to conduct further metallurgy in the coming months to ensure that the figures are as robust (and diminutive) as possible.

I would rather they took their time to do that, than say, publish an OPEX/CAPEX figure that (a) can clearly and readily be reduced, and (b) does not have the full metallurgy to make it robust enough for ii investment or even t/o.

What has happened here is pretty cruel:

The company massively increases the resource, secures a key ii investment from Areva, improves the grades, extends the deposit, receives three very bullish analyst reports suggesting 16c is very cheap ... the SP initially rises to 23c but falls back as, (i) profits are taken, (ii) wider market begins a slide, (iii) Aussie Mining Tax nonsense erroneously impacts us, and (iv) an alleged seller sits at 15c to block the director's June options.

We can't prove the latter, but as you can clearly see, the company does everything right in the last six months, the asset is substantially enhanced, and through no fault of their own, the SP is eroded.

It is unfortunate that the scoping numbers aren't with us in black and white, as this would act as a dose of smelling salts to rouse us from this stupor, but while there is nothing sinister in the company taking a little more time to refine the economic model, the extra wait has proved too much for some.

This is uranium. We are a junior. Our resource is growing.
It was never going to be a short term investment, but I'm satisfied that we have accomplished so much in the last 12 months, even if our SP resides in the same territory. On that fundamental alone, and if you're prepared to hold this for longer than a nanosecond, the current price is a total steal.