Nigel & any one else looking at cheap Uranium plays such as AXY,...

Nigel & any one else looking at cheap Uranium plays such as AXY,

IMO the drill results have been very good to date with more expected soon. It has been disappointing to see the share price get hammered over the last few months on the back of solid news from the drill bit. Especially when compared with other Uranium companies listed around the same time who have lower grade drill results on projects in States that are not likely to allow uranium mining any time soon. WWW springs to mind.

I think that the stock got caught up in all the hype back in June and run too hard too fast and now you see a lot of disappointed buyers dumping their stock for a loss. Also there must have been some disappointment that the original drill results completed by Total Energy back in the 80’s were too old to interpret into a JORC resource. But aside from this the company has stated that the current round of drilling will be sufficient to make its own resource estimation in the New year.

I have also compared the relative cash backing of AXY vs many of its peers and found that the share price is only marginally trading above its cash backing per share! Surely this shows that AXY is cheap considering it has a war chest of cash and plenty of projects to spend some $$$ on. The current price of 16c places little value on the companies tenements/exploration upside when compared to their cash backing (These are estimates only!)


AXY ($8,892,000 cash 30/09/07)
10.5c cash backing per share / 16c SP

WWW ($2,846,000 cash 30/09/07)
9.3c cash backing per share / 37c SP

YRR ($2,681,000 cash 30/09/07)
2.6c cash backing per share / 20c SP

OKU ($5,641,000 cash 30/09/07)
5.97c cash backing per share / 16c SP

AFR ($7,117,000 cash 30/09/07) 4.8c cash backing per share / 35c SP

SNU ($12,524,000 cash 30/09/07) 10.9c cash backing per share / 20c SP

I follow AXY very closely as I have quite a large position and I think it is unfairly undervalued currently considering the solid board/Ecellent tenement locations/good drill results and being fully funded.