wipper, a few gems in that report, here's one:"Importantly, this...

wipper, a few gems in that report, here's one:

"Importantly, this NPV calculation is based on parameters outlined in the DFS. That is a critical weakness with a standard analysis when attempting to assign a value to such a unique project such as Husab. Several years ago we went out on a limb and predicted that deposit would eventually exceed 750Mlb U3O8, which would make the Husab project the second largest uranium deposit in the world (after BHPB's Olympic Dam which produces uranium as a by-product). We now believe that this original estimate may now be conservative. In either case, strategically, it gives the "eventual" owner of this asset a series of uraniferous alaskites that are eminently scalable production-wise, far and above what is suggested in the current DFS. Given the number of nationally-based, vertical integrated power companies examining this project as a bolt-on acquisition, we believe that investor risk has substantially lowered, and as a result, we have dropped our discount rate from 12 to 10% pa. It is in this context that the 3-year target price must be viewed as the absolute minimum that Extract management must consider to a renewed takeover Offer."

De-risked in WHI view and ABSOLUTE MINIMUM that extract must consider for a renewed takeover offer - that 3 year target is AU$16.14!!!!

I would presume EXT management have read this report and taken heed!

Also, as a general note reading the report:
- I think WHI have taken a conservative approach (from my experience in hard rock mining with RIO), and as such think there should be plenty of upside.
- Some interesting comments on scalability of the HUSAB resource (ie further upside for any major ie RIO who seek large, long life, low cost operations) (page 12)
- Assumptions that EXT will issue script to raise capital to assist with funding - forecast is for 332.89 million shares on issue with the additional shares issued @ $8 ea (page14)

Just my thoughts.

An exciting week ahead i think!