Late last week ARMZ made an offer to pay $8.00 per share for all issued shares in Mantra Resources.(which has been endorsed by the board of Mantra) This values Mantras resource at around US$10.26 per pound in situ. Mantras resource is at shallow depth and capex required to extract will be considerably lower than most up and coming miners.
Lets fast forward to WHE who have just announced today a massive resouce increase to 77Mlbs U308 at 720ppm !
Lets also by VERY generous and apply a 50% discount to the price per lb of U308 at say $5.00 for its possible higher capex. This simple sum alone implies a value of $1.69 per share.
Given that this company is really a Syngas/UCG play, its significant uranium credits conservatively value the company at 4 x its current trading price. Its Uranium alone has to be VERY attactive to any potential local suitor, as Hungary already obtain 36% of their energy from nuclear and with the governments approval of the commissioning of two new reactors this can only go north.
The WHE board have already signalled that they are currently exploring several options to "value add" to the position of its shareholders. This logically will have to be sorted prior to its EU listing early in Q2 next year - exiting times ahead me thinks.
Remember the U308 is an "added bonus"....the real value of this company remains in its numerous strategically located UCG assets worth considerably more than its uranium.
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