Mike- do keep us posted of any reply you receive!Very...

Mike- do keep us posted of any reply you receive!

Very interesting and worthwhile letter and took guts to write it as a new shareholder.

I would add to your point about selling the crown jewel (Langer H) at the bottom of the price cycle and agree that it looks now that having first put conditions on the sale it looks like the firm is pretty much willing to sell it at any price they can reasonably justify.

One analyst- David Talbot of Dundee Capital Markets in Canada- puts a net asset valuation on LH of $1.1bn which would indicate a 20-25% minority stake (which is what appears to be on the table) as worth some $220,000- $275,000
so almost enough to pay off the unsecured bond maturing in 2015.

But as you rightly ask is this the best medium-long term solution for the firm and shareholders?

When the uranium price goes up in the next 12-18 months as according to most forecasts it seems bound to- will the board then have been seen to have secured a good price?

If it does manage to sell 20-25% this means that cash flow from LH will be reduced to 75% of what it would otherwise have been. While a higher uranium price will compensate in part it won't wholly make up for losing such a sizeable chunk of regular cash flow for up to the next 25 years!

I agree with those who say selling Queensland exploration assets would make more sense.