huge break out, page-7

I think you will find that MLI's process is probably not hugely expensive as 1) the dirt has already been mined and is already sitting in the tailings dump so no hard rock mining & 2) the plants acquired through the Skeat merger are readily adaptable to extracting the uranium and 75% of whats equipment required to produce uranium is on site.

I can't quatify these two aspects in $$ terms but given these 2 points plus the near term production ie 2Q08, one could argue that the valuation of inground resource should be higher than the rule of thumb for other uranium hopefuls of $20-30 of EV/inground undeveloped inferred resource. This is no valuation but even using the A$25/inground pound and assuming that the current JORC resoources is repeated throughout the remaining 2/3rds of the tailings dump then you get the following numbers:

$25 x 36mlbs = $900m
per share = $1.80/sh

If one starts to use higher NPV / inground resource of say $40 because of the points mentioned above then the upside does start to look a little insane ie the $1.80/sh goes to $2.90.

Just speculating out loud here and is not forecast whatsoever.

FYI the recent takeover of UrAsia by Uranium1 was done at US$31/lb for INFERRED resource (ie same classification as MLI's resource) in a US$3bn deal for 100mlbs of uranium