valuation

Mee is an excellent buy. It has (i) potential gold resources of 880.000 ounces, ie about AU$750 mil, (ii) the CSIRO joint venture with a good trial coal field and (iii) now has over 20 uranium licences, including one which was prospected in the 70/80s by Total (the French energy giant) with a U3o8 rating of .33% from a very limited bore sample. That is a significant percentage of uranium and also of total resources compared to some of the much higher cap (AU$100-150 mil) unproven AU uranium companies.

Its (ivth) venture is its Italian mine, which is easily accessed and its uranium value (2.3mil lbs) is about US$230mil, however there are signficiant environmental opposition issues. They are being worked on I understand but my not be easliy overcome, at least not without a JV. However, Mee has engaged a highly experienced Italian expert to assist. I think it is a longer term project and am no so confident of its fruition in the short term. However, it adds speculative value and potentially European takeover interest.

Mee has a market cap of about AU$29 mil, being less than 3-6 times that of other, much lesser, stocks. Several pay for research uranium experts recommend it highly. I suspect that the difficulty is that it does not actively market itself as a uranium play, and thus misses the speculative buyers. However, I understand that it is considering a rebranding later this year, or splitting its uranium business, with preferences to existing shareholders. Further, it has the uranium potential with a solid backup interest in gold and coal gasification. It thus has less downside risk than many uranium plays.

I disclose reasonable long term interests (2010-2014) in Mee (acquired at AU$.13) and Cameco (acquired at US$39 and payng a minor dividend), my only junior and senior uranium and gold plays respectively. The time frame reflects the IAEE survey as to when uranium prices are likely to reduce to the US$60-70 range. Gold prices are speculative and of course will depend on the US$ amongst other things, and little weight is placed on those in the long term, given its significant fluctuation over the past 6 years. Best wishes to all.