FYIExtracts from a analyst report which came across my desk,from...

FYI

Extracts from a analyst report which came across my desk,from Canada:

Stock Rating:
Spec Buy
12-month target C$2.05
Potential ROR 105%
Company Profile
Sector Energy
Ticker EXT-T
Shares O/S, basic (m) 184.3
Shares O/S, diluted (m) 202.7
Mkt cap, basic (C$m) 184.3
Mkt cap, FD (C$m) 202.7
Key Metrics
NAV (C$) 2.05
Cash (C$m) 7.8

Extract has two exciting uranium projects on its 100% owned
exploration licences located just south of the Rössing mine in
Namibia.

• Its main asset is the Ida Dome project for which a scoping
study has been completed; however, its newly discovered
Rössing South project could become even more valuable in the
near term.
• We are initiating coverage of Extract Resources with a
Speculative Buy recommendation and a C$2.05 target based
on 1x our NAV of C$2.05.
Company and Industry Fundamentals


Valuation and Recommendation

We have valued the company largely from its NAV, which we have calculated to be
C$2.05 using a 10% discount rate. We have modelled a slightly larger throughput
than envisioned in the scoping study to produce over 5m lbs of U3O8 per annum
and estimate the operating costs in the first five years of production could average
$23.14 per pound of U3O8. Using our U3O8 price estimates, Extract could
generate nearly US$150m in pre-tax cash flow from operations at the Ida Dome.
We are initiating coverage with a Buy Rating and a $2.05 target price.