canadian uranium producers are on industry av P/E 27 for est...

canadian uranium producers are on industry av P/E 27 for est 2007 earnings !!!!

http://www.kitcometals.com/commentaries/Matlack/coal/sep262006.html

Lets see for our Jungle King, at

(1) 2 mill lbs pa, USD 54 / lb (current) AUD 0.75, say USD 14 / lb cost = abt 60 cps NET earnings, so at PE 27, that would give us a 16 buck share price for the U alone.

At target

(2) 4 mill lbs pa at say, USD 100 / lb (plenty calling this now) AUD 0.75 = abt 2.60 ps NE, so at PE 27 = 70 bucks a share for the U hey ?

Well dont blame ME for these numbers. I aint crazy. Cameco and PDN and others are at av PE 27 based 2007 est earnings ! Mt Fitch should just about give us case (1) above and prob end up as big at least as LH (?) .......... so ORM rule #1 ..."why not?"

There is little doubt in my mind that THIS is the reason Harbinger and Citadel are accumulating on market. Its the uranium investment they are after, taking their downside as underpinned by CMR's 50% free carry of the base/specialty metals projects, under JV with HNC, tho Hots could argue, and prob rightly so, CMR's current share price could be justified by the projected LEAD from sulphides alone.

Just another angle when trying to zero in on fair value ... which must be significantly higher than what market assigns atm you would think.

Uranium holds the key to whether we can reach the Holy Grail in the current "A" primary. What results would be needed from Kylie and Rum Jungle Creek Sth plays coming up do u think? Not much? Well if the current power trend channel continues, the Grail looks achievable in "A" likely time window.

Maybe we should end up dual listed in Canada like PDN ? Well if we split up into a pure Uranium and a base/specialty metal producer, you could certainly argue a case for dual listing in Canada and Hong Kong for the respective parts say (?)

Can see how the Golden Fleece could quickly come into view for circa 2009 on this basis.

IMBOOC