This was written by a poster back in 4/04 on AEX on another sharetrader board:
First off, let me say that this is a HIGHLY speculative share and has no place in your portfolio unless you're prepared to lose all your money you put into this stock. It only makes up 2% of my portfolio for that reason.
AEX seems to have the startings of a similar story to PDN - a stock that went from sub 5c to over $3 with a billion dollar market capitalisation in a few years...
Presently, AEX is sitting on a mine with 11, 000 tonnes of inferred Uranium at its Denny Dalton mine in South Africa. The 11, 000 tonnes was inferred from back when Uranium price was $5/lb. It is currently $38/lb and steadily rising it seems.
Go and read through PDN's annoucements from when they started developing Langer Heinrich Uranium Deposit located in Namibia, Southern Africa... the circumstances are very similar. The company PDN bought it off did work on it when Uranium was $7/lb for an inferred Uranium deposit of 10 000 tonnes and a mine life of 10 years or so... not feasible at those prices so it was never developed... PDN were lucky to snap it up for a mere $15k..
As the price of Uranium rose, so did the measured, probable and inferred resources PDN had to mine 'cos they kept reducing the cut off grade they could mine at. This gradually moved their inferred Uranium deposit up to 33, 000 tonnes as they kept lowering the grade and the mine life extended from 10 years to 15-17 years.
With the price of U at $38/lb and a study done on Denny Dalton at $5/lb, you would think that with further drilling, etc. the cut off grade for U will lower and the measured, probably and inferred resources will expand so too will the mine life..
It ain't gonna be a tenbagger overnight or even in 6-12 months if it is going to be one... it takes time for the drilling and the reserves to be measured, probable and infferred developed (PDN took 1 year increasing their U deposits before they even started mining)... but, if you're bullish on Uranium, which I am... some people reckon $110 for the price of U... if it gets to half of that, well AEX are in a sweet position providing they can effectively mine this Uranium out.
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