Attached is Ord Minnett's Company Review dated 11 July 2006 on Australian Uranium Producer ERA.
Table 4 compares a number of uranium companies market value of A$ per tonne U3O8 based on their uranium reserves and resources.
Summary Table 4
COMPANY Valuation A$/tU3O8
AREVA $75,084
PALADIN $56,520
DENISON $46,558
CAMECO $29,314
SRX URANIUM $10,224
ERA $9,818
SUMMIT $6,932
An analysis of Ord Minnett's table indicates, based on companies uranium reserves and resources, Summit's share price on a comparative basis, should be over 10x its current price when compared to AREVA, over 8x its current price when compared to Paladin, around 7x when compared to Denison and 4x times when compared to Cameco".
Further, the quality of Summit's uranium resources in terms of grade and tonnes and proximity to existing mining infrastructure, translate directly into Summit becoming one of the world's lowest cost uranium producers with high margin profitability".
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COMMENT: I can't open the attachment; however, this report will be on SMM's website soon.
Gerry
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