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50.0¢ 92 energy limited

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Jimmyp3

712 Posts.

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26/11/21

13:23

Post #: 57881579
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Originally posted by Johnyb888 ↑

Yes. Gone from a high of 1.15 to currently 0.62 or about 54% of its highs.... A 46% sell off and on going.

I genuinely don't get the bearish sentiment around U stocks on the ASX.... US/CAN stocks have had new highs in October and November. We never even got close to the September highs... Once again after small gains in the US/CAN we are getting sold off big!

It appears to me that during the September highs there was enough hype to attract a lot of "fast" money that is now exiting because the quick gains haven't happened.

Its truly frustrating that 92E is one of the biggest loser and IMO it goes completely against any fundamentals that are available both in term of the uranium market (with U prices only one way to go...UP!) and in particular the company itself.

Currently new U stocks are popping up like mushrooms and many of them instantly get a higher valuation then our 92E (particularly in the US).

The differences between these new "uranium" companies and 92E are huge! I genuinely don't think the market understands nor appreciate the following contrasts.

1: Dedicated to Uranium!
92E was formed at the turning point between the bear and bull market in Uranium and Uranium was not hot yet when these guys got together and decided that despite a decade long bear market they wanted to start a Uranium company 100% focused on Uranium! This team has therefore only members that are fully dedicated to the uranium thesis and after a 10 year bear market they had there pick of experts to choose from! They choose the best!

In contrast many of the new U stock have recently changed strategy and decided to follow the hype and jump on the uranium band wagon. They often were focused on different minerals/metals and happened to also have ground that is prospective for Uranium, or they have just started a new company and recently staked new claims. These companies are rarely fully Uranium focused and likely don't have much genuine Uranium expertise since this never was the focus.

2: Early choice, Best Ground!
Because 92E has a fully Uranium focused team and because they were well in advance of the hype they have had the opportunity to pool all their knowledge and take their time to pick the very best claims available without much competition! That this is the case becomes very apparent if you look at the locations of their claims and that they have claims that have had historical Uranium hits in the 50 and 60's and never have been followed up... There is Uranium there... Just need to find out how much!

The new u stocks either never picked their ground with uranium in mind (often they were looking for things like Vanadium or Gold or other) so who knows what there, or they were late to the party and picked the scraps that were left after the early movers had their pick or they claimed ground in poor locations with no infrastructure which means that even if they hit something it might not be economical.

3 Further progressed
Many of 92E have had magnetic analysis and other pre drilling research fully done. They have started drilling and have a clear exploration strategy in place for most of their claims.

The new U stocks haven't done most of these things and probably don't have the expertise to do it as comprehensive as 92E.

4 Fully cashed up!
With more then 10Million in the coffers they are ready to drill! No more cash raised for the near future!

The new ones are often not cashed up. And they still have $$ to spend on pre drilling research and analysis.

5 Early success. Very very promising!
Probably the most important distinction between most other explorers out there is that 92E has been successful in finding Uranium from the get go! They had a pretty decent hit in the 4th hole they ever drilled! This is not only a big up on most other juniors out there it also a great indication of there expertise and exploration methods that suggest these guys really know what they are doing!
Their success has further been confirmed by next door Baselode energy that had several successful holes in the same magnetic anomaly that stretches about 50% on either claim. Both 92E (they immediately suspended further drilling to focus on this) and Baselode (check the video interview with their geologist) believe they have hit something special! This is genuine success and not really priced in (Baselode trades at about 2x market cap and has less cash on hand as a comparison)

It seems to me the market is currently completely missing the nuance in the junior U sector, and it appears to throw almost random valuations on any Uranium explorer. This is frustrating now but offers and outstanding buying opportunity for those able to make the distinction. If 92E does find what they hope they might find we could well be in for a live changing investment. It will be the explorers that hit big deposits, that can go 100x this Uranium bull run.... I doubt there is a better choice then 92E out there!

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Great write up Johny. I appreciate your time as I’m sure most on this forum would too. I’m prepared to be patient for this one as well.

92E Price at posting: 62.5¢ Sentiment: Hold Disclosure: Held
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