I did some figures on SAU/SNU. Please correct me if I made any errors.
SAU's 39% holding in SNU is worth $9million (39% of $23 million) at the issue price of $0.20 .
SAU has recently run from approximately 47 cents (market cap $27million) to today's price of 62 cents (market cap $36 million). This is an increase in SAU's value of $9 million, equal to their SNU holding at issue price of $0.20.
Therefore, judging by the recent run in SAU, the market is 'guessing' that SNU will double in value, i.e. rise to $0.40 per share.
I personally think that SNU will rise higher than this, and therefore SAU should continue to rise also.
The comments made my South Australia's Premier Mike Rann has had a very positive impact on South Australian uranium companies today such as AGS and ADN. Should help SNU also. I also think that SNU has better prospects than NUP which closed up 400% from its issue price on the opening day.
I hold SAU.
SNU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
