URANIUM 1.02% $24.70 uranium futures

companies with jorc massive premium, page-14

  1. 566 Posts.
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    Fedexpress,

    You are going off onto different tangents.

    I state that $10+EV/lb is not a (as you quote) a "premium or substantial EV/lb $ measure applied(e.g. $10/lb+)".

    If anything, if you wish to exclude PDN's other 40,000t of deposits their EV/lb actually rises much higher than $19 per pound - As you state in your previous posts.

    So how can $10EV/lb be a premium if producers are trading at PDN (worst case) $19EV/lb or (best case) $50EV/lb, and ERA is trading at $18EV/lb but because of its contracts limiting the upside.

    How can $10EV/lb be a premium? Especially in a market where the cost of Uranium is increasing and people are talking of $100, $120, $150?

    PDN's value I have provided is this specific case is based on UBS data - whilst I have access to 6 other brokers statistics aswell, they have provided the most comprehensive data with relation to takeovers and premiums being paid for in the Uranium Industry.

    Added to this, I must say if 3 of the Investment Banks (2 of which are the largest in Australia) are saying that $25+EV/lb is somewhere near fair value for the total (and they are using the total for PDN valuing it at $19EV/lb, and assuming the U price will slightly retrace in the medium term) , and recent market trends have supported this, then I will again say your $10 EV/lb comment is useless.

    Why is it useless - because market sentiment, market chatter, market movements and the real market makers are saying it is ridiculous.

    What do you care anyway? I am basically saying that these smaller companies have the potential to be valued higher = higher takeover offers etc....!!!!

    TheGimp



 
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