At 50cents this stock has a diluted market cap of around $75million. That is around 10 times cash backing.
Now as I said this morning, to get Ann Mason off the ground they need one of three things. 1) Someone to finance them to the tune of approx $1billion and have access to working capital of up to $3billion = $20 per share in start up capital costs. A loan kills the project, a capital raising kills the share price - therefore not really feasible. 2) A major fund to production by a major company(would result in a dilution back to around 2-5% of the project - simple insurance on behalf of the major company.) 3) To find a high grade body which can be mined first via an underground operation of sorts, so as to generate the funds required to go after Ann Mason.
So although Ann Mason cranks out some loveley $NPV, its depth is an overbearing concern and cost to start it up is a huge concern. If it were from surface or just below, the start up cost would probably be a poultry $20-$30 million.
So taking into account what 'Profittrader' believes to be alternative benefits of the company's portfolio it is now a case of investors trying to determine how the company is going to recognise a positive impact on its market cap from a project with a huge $NPV over a huge amount of time at a set up cost more huge than most very high grade deposits.
I suggest without an insight into how this $NPV will ever convert to a return for the shareholder, then brokers will find it hard to recomend, despite what may come out in the press or other promotion related articles.
However and on the positive side. $75 million diluted market cap for a uranium stock is not all that uncommon these days, so you just never know.
IMO
PMH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
