This is from RCR: Investment Comment: Our preliminary DCF modelling of the GRD Minproc PCE gives an assessed NAV of A$8.19/share, assuming long term US$60/lb uranium contract price, US$1.2bn capex and a conservative 30% pre-DFS discount applied to NPV. This equates to US$3.31/lb for a target 590mlb resource. So why is EXT trading under A$7.00/share, which would value a potential ~600mlb resource at less than US$2.40/lb, when corporate transactions in uranium companies have taken place at US$6-US$7/lb in recent years?. A soft uranium market is part of the answer, plus it seems that until the eventual project ownership structure is defined (EXT is looking at potential strategic partners) the stock could continue to trade at a discount. And Kalahari?s 40% stake has led the market to conclude (wrongly in our view) that a takeover is unlikely. The current discount presents buying opportunities based on our NAV and impending DFS 4Q10. We discount recent press speculation regarding the Russian Stateowned giant Rosatom taking a stake, in consort with the Namibian Government. EXT has ticked all the right boxes with the Namibian Government and is likely to maintain full control of any sell-down process.
And today Thomas Weisel out of Canada said their Extract target price is 11.13.
And on the 24th of June, Haywood said their target price is $10.10.
Cait
EXT Price at posting:
$6.46 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)