commsec valuation increases to 1.78

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Research Insight
26 June 2008
Extract Resources: Rössing South: Another Namibian Giant?
Last Traded: $1.285 Market Cap: $238m Sector: Energy

Valuation and recommendation
While there is risk in CommSec’s estimates of resource volume, grade, capital costs,
operating costs, as well as the uranium price, CommSec believes there is sufficient
support for all of our estimates.
In our valuation, CommSec has also included a risk weighting on both the Ida Dome
and Rössing South projects. Also, CommSec’s assumed uranium price is US$65/lb,
which is well below recent contract indications. CommSec’s derived valuation of EXT is
now $1.27, which includes a heavy risk weighting on both projects. If we remove the
risk weighting, our valuation increases to $1.78. The value grows over time.
CommSec confirms its recommendation on EXT of ACCUMULATE / OUT PERFORM