A few reasons, but I think the biggest contributors to the dirt cheap valuation are:
Recent forced selling down of their EME stake by Jindalee Resources as a result of financial difficulties
Large CGN ownership seen as a risk by some investors
Poor liquidity due to a very small free-float as a result of the top 2 share holders owning 79.11% of the company
The company does no promotion
There are definitely risks with this company, but with EME, many of the normal risks with junior miners e.g. dilution, capital management, financing etc. aren't a problem for EME because of their large cash position, astute allocation of capital (no raise in 10+ years) and well financed backers (CGN).
It is very interesting when you compare the performance of EME vs URNM especially when you consider that unlike most other uranium juniors, there has been no dilution. I personally see a big catch up and outperformance of EME relative to URNM, when investors start to take notice of the progress the company has made and the quality assets that they have.
The valuation is most pronounced when you look at the EME vs uranium price chart and realise that this company is trading at its lowest valuations historically.
I think the market is pricing this company completely wrong and when you look at this company's fundamentals vs the uranium juniors on the ASX it has:
One of the highest grade deposits at 1,530ppm (many multiples of the grade at comparable peers)
One of the lowest valuations of in-ground resources at ~$0.06 EV/lb U3O8 vs peer average of $0.5
Low risk of dilution with one of the highest cash balances (as percentage of mcap)
A legitimate path to production, with a well studied high grade deposit and strong financial backing
