CommSec’s valuation and recommendationCommSec has reviewed its...

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