So much is going on with this co and so many things to get excited about that I don’t think we can put the shareprice action to a single set of drill results which won’t be out for at least 5 weeks (Njame South will be first, in about 10 days, then the assays for drilling you are referring to at Siamboka should be received by the co shortly after ~ aprox 2-3 weeks)
When I say so many other things, I mean:
- For starters, you could argue the ML grant (yesterday) hasn’t even been fully factored in yet as this de-risks the resource (not just established but also those yet to be defined!) within the Chirundu JV. Serious money has been waiting on the sidelines for this. Look at the buyers chase in the depth and course of sales. People are locking themselves in a position here, not just trading
- The Koreans and Japs and Chinese are desperate to take an equity position at higher price levels to secure Ux supplies, and talks are advanced and continuing. Watch this space
- M&A activity and talks happening at a local level too (Denison proximity makes a JV feasible and a corporate relationship would be synergistic)
- ALB are in administration and are due to conclude sale of their JV interest (to us) any day now. Our interest in Chirundu would become 100%
- Cost of production is being optimised. Again, due any day now we should receive a confirmation that costs have been reduced to US$22-24/Ib uranium
- Ux sentiment has improved and AFR has a lot of catch up to do when compared to peers. A spree of acquisitions by overseas firms has lit a flame to a fire which has the fundamental fuel behind it to satisfy a decade-long bull market.
- BFS engineering studies to be recommenced (this may happen after an offtake partner is secured)
- The mammoth exploration program that has just been begun spanning most of the kariba valley outcrops throughout Zambia - all of which are minimal risk (eg. Uranium has already been discovered in drilling at Chisebuka, Namakande and Sese in Botswana) When you look at all the above you can see why I think it’s unlikely that one anomaly can be responsible for most or all the increased interest. However, you are right in assuming that it will be and I agree but probably not for another couple of weeks when we get closer to results…
Top 20 own >85%, and with all the forementioned you’ll see why my call of $1 is not out of the question – when I was holding at 3c no body was interested in AFR except me and Ferrari lol. Now there’s 50-80 views an hour. It’s exponential. When it gets to 50c we’ll be saying the same thing when this thread gets 1000 views an hour!... remember when it was 16c..?
Lock yourself in as the placement holders have done, not much to go around and so much to look forward to. All the best to all viewers (be it holder or spectator), ENJOY!
AFR Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
