pen surging , page-34

"PEN's peers in the US which have already commenced production currently have a market cap of less than $200m"

Binbin - I don't have time for the research to check all the 'peers' but there was an interesting article on Uranerz last night - and a link to a recent company presentation.

Uranerz ia a good benchmark as it has similar production parameters.

For example:

15m lbs of M&I resource - comapared to PEN's 12m lbs - and forecast 23m lbs by the end of March

Initial annual production of 600-800,000lbs, ramping up to 2m lbs - compared to PEN's 3m lbs

Derisking (permitting/mine construction) - all permits received for 1st stage (Nichols Ranch - 3m lbs M&I) with mine construction commenced - with production start-up in 2nd half 2012

Current market cap of US$232m (down from $450M a year ago) compared to PEN's AUS$145

Summary - Strata has potentially a significantly higher resource and a larger production target than Uranerz. But Uranerz has full permitting for Stage 1 and is much closer to production and has significant offtake agreements in place.

On that basis - and assuming that Strata can get its M&I up to expected levels - the market cap valuation differentials between the 2 should not be that great. So the lower-end of Shadders 'forecast', at least. of 20c seems to be supported by the comparison (assuming that Uranerz returns to its pre-Fukushima SP - and market cap of $460m - as it gets closer to production.


Her's the link to last night's article:

http://seekingalpha.com/article/367651-uranerz-add-it-to-the-list-of-uranium-stocks-to-watch
And Uranerz' recent presentation:

http://www.uranerz.com/i/pdf/URZ_Presentation_February_1_2012.pdf