1tobehold, Unfortunately I’m not a holder as yet; however EME has caught my eye last week and is definitely on my research radar. Hope you are right about the pull back, I guess history tells us that new listings without immediate cash flows usually come back in price, and I guess the other important point to consider is the valuation assigned to this stock in the recent prospectus i.e. ($0.25 per share).
Current market cap - based on 22mil shares on issue, is approx $18mil (basis Friday’s closing price) note 10 mil of issued shares are in escrow for 24 months.
Prospectus market cap - @ $0.25 cents is $5.5mil.
Assets - Cash in bank is $2.550 mill
“U” Assets - 3485 – 4270 tones U3,O8. (Not yet JORC compliant – just based on previous studies by Central Pacific Minerals NL)
Exploration approvals - Applications are pending, and should be successful given the Govt’s position on “U” however timing is critical if sp is to maintain its current premium.
My conclusion: EME appears to have nice “U” assets, particularly the “Bigrlyl” deposit, which is said to be “high grade”. However as a first critical step, EME must obtain the necessary approvals from the Minister of Mines and then complete/execute its exploration strategy to establish its true bankable reserves. Taking all above factors into account, it is my view that the current sp is ahead of itself, possibly riding the current “Uranium” wave. Any delay in obtaining the necessary approvals and permits from the Minister of Mines may have a negative impact on the sp. Current price of $0.86 cannot be justified, while it deserves some premium in today’s “U” market environment, i agree, $0.40 is a more realistic value, I will definitely be a buyer in the 0.25 – 0.35 range.
Cheers Zackman
Ps the above is my interim research and should not be relied on if you are interested in this stock. Do some further research I’ll be glad to read other’s opinions.
EME Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
