Fat Prophets; Hold recommendation; No price target; Last traded at $6.96.
WITH the spotlight back on uranium stocks, Extract is pleased with the timing of its recent resource upgrade at its Rossing South project in Namibia, Africa.
"The data and enhanced resource reinforces our long-held and overwhelmingly positive view of Rossing South as one of the premier uranium discoveries anywhere in the world," Fat Prophets said.
The Rossing South Zone 1 resource was upgraded by 34 per cent from the previous estimate of 108 million pounds to 145 million pounds, at an average grade of 449ppm.
The Perth miner had to clarify speculation last week that it was a potential takeover target.
It told the Australian Securities Exchange on Friday no offers had been received by it, but it confirmed that several third parties had been in contact to express interest in participating in the development of its flagship project.
Fat Prophets said it was eager to see the maiden Zone 2 uranium resource, which is on track for August.
"From our perspective, the Zone 2 resource should be in the vicinity of 110 million pounds (management guidance 69-106 million pounds)," the analysts said. "We would anticipate a combined Zone 1 and 2 resource position of around 350 million pounds during calendar 2010, potentially pushing up towards the 500 million pounds mark as initial results from Zones 3 and 4 begin to kick in from 2010 onwards.
"So this monster is only going to get bigger and as a result we believe that the corporate situation is sure to come to a head within the next 12 months."
EXT Price at posting:
$6.99 Sentiment: Hold Disclosure: Held
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