pen & blr

I am Fed up with the unrealistic ramping of PEN at BLR thread by sb!

I have to post on PEN thread again.

How much is PEN worth on earth?

According to PEN's Appendix 3B, Currently PEN has total 2.8 billion shares on issue.

JORC: 25.2 mlbs U3O8 Recovered resource: 15mlbs U3O8

Grade : 429 PPM Thickness 2.65m

Lance ?C1.5 mlbs Pre-Feasibility Study ( of course this is the ideal condition, please note it's using 507 ppm instead of 429 ppm)

Price at $65/lb, net profit = 32 million at 507 ppm
Price at $75/lb net profit = 47 million at 507 ppm

EPS= 32m/2.8 billion = 1.14c/ share, 80%*1.14= 0.9c/ share
EPS= 47m/2.8 billion = 1.67c/share 80%*1.67= 1.3c/ share

(80% comes from the JORC 429 ppm/supposed 507ppm in study.)

EP is less than 10 of course because Recovered resource is only 10*1.5mlbs = 15mmlbs.

I give EP 8, and fair value = 0.9*8= 7.2c/ share when U3O8 is at $65/lb (Actually current u3o8 is only $60/lb)

= 10.5c/share when U3O8 price is at $75/lb.

You have to admit all of the above are already based on nearly idealest condition.

Current PEN is 8.8c/share,so without any upside Exploration potential, PEN is already significantly overvalued!

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BLR: shares on issue 0.73 billion. 1/4 of PEN.

Total JORC resources on 100% owned properties stand at 60.2 million pounds U3O8.(60/25 = 2.5 times more than PEN.)

Grade is 590 ppm much higher than 429 ppm.

at 1170ppm we still have 27.7 mlbs U3O8--more than PEN's total JORC, Grade is 2.7 times higer than PEN!!!

Project is located 30km NW of Canon City, the location of one of the USA??s four licensed uranium mills.---- we donot need set up the mills by ourselves--we just sell our U3O8 ore.

low costs & instant positive cash flow potential!!!

If you know simple math, you should know which one is overvalued, which is undervalued.

If PEN worth 40c/share, I believe BLR is worth at least $1.00.


cheers