There is a new note out this morning in the UK from broker...

There is a new note out this morning in the UK from broker Hanson Westhouse on URU. It has this to say about Extract:

"Several recent transactions have occurred in the past six months that allow us to gauge the current market value of U3O8 resources. Firstly, George Forrest International bought Forsys Metals Corp for C$579m cash at the end of 2008. The main asset was 41.4Mlbs of U3O8 at 110ppm in Namibia. The project was post–feasibility and is due to go into production later this year giving an implied value of $7.66 per lb U3O8 at the end of 2008.

Secondly Paladin Energy conducted a share offer for Fusion Resources in November 2008. Fusion’s major asset is a 6Mlb U3O8 project at 250ppm in Australia. The project was pre-feasibility and gave an implied valuation of $1.97 per lb U3O8 at the time.

We believe that the Rossing South deposit is superior to both of the afore mentioned deposits in terms of size and grade. However, as it is still at the resource definition stage, we have used a conservative valuation of $4 per lb U3O8.

...

Extract Resources currently has a 25.1Mlbs resource at Ida Dome and 108.3Mlbs for Zone 1 at Rossing South. Combined with estimated cash of A$20m at the end of June 2009, these resources imply a valuation of A$4.02 per share. We are expecting a resource of at least 105Mlbs for Zone 2 at Rossing South, due in July 2009. This would imply a valuation of A$7.12 per share."