This was posted on the RES forum (What do we think??):I've just...

This was posted on the RES forum (What do we think??):

I've just got out of my ext shares and into res

I know they are in different commodities but i look at investment opportunities rather than resource type

EXT has had a stellar run from Jan when the sp was around $1.4 when I got in.

The reasons its had such a good run are quickly as follows

1. location (beside RIO's operating mine)
2. Good JORC resource with more to come
3. Approx 300m/lbs at this stage
4. good management
5. Rumors of RIO take over
6. Cash $28m

Now look at RES

1. Location main coal fields (Waterberg) with close proximity to future coal fired power stations
2. JORC resource should be over 1b tonnes when announced
3. Management team who done this before
4. $35,000,000 plus in bank

EXT has approx 220m shares on issue with a Mkt cap of about $1.8 billion at todays sp of about $8

Uranium spot price is approx us$48/lb

Coal spot price is approx $68/t

RES has approx 150m shares on issue with a Mkt cap of $97m

We know that with management taking up their rights issue etc.. they have shown great confidence in res and have knowledge and confidence of where it is going.

For me its a no brainer for the next EXT its RES.