Today Gavin Wendt gave a recommendation on MEY with a $0.36...

Today Gavin Wendt gave a recommendation on MEY with a $0.36 target. Wendt was former Head of Research and Senior Resource Analyst at Fat Prophets and now has is own service the MineLife Weekly Resources Report.

some excerpts

The company?s short term plan is to bring the Marenica project into production, with the Scoping
Study, due for completion during mid-May 2010, likely to determine the economic viability of the
project. One of the key aspects in my view will be the opportunity to more than double the overall head
grade of the deposit to around 900ppm through specific ore-sorting methods. This will drastically lower
the amount of material to be moved and treated through the plant.

With a strip ratio of around 3:1, mining costs should be suitably modest, which in turn will assist with
project economics. In my view, an operation producing between 1.5 million ? 2.0 million pounds a year
could be justified based on current project parameters

Marenica has around 550 sq km of exploration ground that it is endeavouring to explore more
expansively during 2010.

And what about Marenica from a valuation standpoint? Well, the evidence is truly compelling

If we
applied what I consider to be a still-conservative in-ground valuation of US$5 per pound, this
generates a share valuation of A$0.36 per share.
Accordingly, I would recommend Marenica Energy (MEY) as a Buy around $0.16.