rcr uranium report , page-3

The RCR report does is quite conservative in its assumptions (they usually are), which isn't necessarily a bad thing. For example, if you read the fine print, the sensitivity analysis assumes a uranium price of $60/lb out through 2017. The price target seems to be set at between 60-70/lb, which is the contract price at the moment (spot is 45/lb).

They have factored in doubling the resource (approx) so that the mine life is 10 years, which is dependant on exploration. The valuation per pound grows with each stage, ie Njame to Gwabe plus extra, which shows how the value of the project will grow with new resources and progress towards production.

As far as the price target goes, I've noticed that most brokers etc are reluctant these days to set massive 10-bag targets for stocks, I suppose it does no favours for them or the company concerned. 20c in the near term is fine by me, more than three times where we are now - if we get there I'll be holding a small, personal parade around the office ...