CommSec’s valuation and recommendation
CommSec has reviewed its base case assumptions (Table 2). Our revised
base case valuation has increased from $1.38 to $1.50 per share.
If Zone 2 returns similar grades to Zone 1, there is significant upside
potential to our valuation; under these circumstances our valuation
increases to $2.42 per share.
Given this valuation upside CommSec retains its BUY/OUT PERFORM
recommendation.
Resource Statement prompts revised base case
CommSec’s revised base case valuation of EXT is $1.50 per share. In reviewing the base
case valuation we have:
adjusted down total Rössing South project (i.e. Zones 1 plus Zone 2) tonnage from 337Mt
to 275Mt,
increased estimated overall Rössing South grade from 270ppm to 337ppm,
increased our contained metal target from 201Mlb to 206Mlb U3O8,
adjusted our discount rate in response to current market conditions, and
developed a pit shell around the new resource and revised upwards our waste mining
requirement yielding an overall strip ratio of 6:1.
Regards,
UMC
Add to My Watchlist
What is My Watchlist?
