scx eme official interest, page-8

Songokou,

I think your estimation is way out of step.

OK, I have based my assumptions that we have:

50,000,000 SCX
66,000,000 SCXA

Approximate M/C $13mln

Bigryl 14.3mln lbs

715,000 lbs

If comparing it to recent T/O of OMC by Denison which valued them @ $1.44 a share @ $16.20lb in the ground.

If we were to base the same criteria @ $16.20lb values the SCX shares @ .10

There would also be a premium on top of that depending on how fierce the competition was to acquire the 5% stake.

The premium may be another .3 which would take it to .13 I doubt it would be much more.

Your Market Capitalisation has not included the SCXA, plus if you look at SCX's last financial report, they have further diluted the shares by allocating more shares for administartion purposes.

I agree that the 3 Mine Policy will be scrapped. However, it will still be left upto the states regarding mining. That time process could tie up alot of explorers and producers who are not in the friendly state of South Australia.

The CEO of SCX will play hardball with them.
I am not sure how they will react with Genke.

715,000 lbs x $16.20 = $11,583,000 which is actually less than SCX's present Market Cap.

If the expected drill results can increase the size of the Jorc for Bigryl, then it will be a different matter.
Companies don't mind paying a premium if they can see the longterm benefit.

The downside to the drillresults.
Why would EME want to quicken the drill results if it is wanting to buy SCX's 5% share? A good drillresult would only work against them at the negotiating table.

The $16.20lb in the ground may be conservative.
However, there needs to be some tangible figure in which to base a T/O. In my view, the Denison T/O of OMC was a very good valuation model to apply.

Will be interesting to see how much they are prepared to offer.

Cheers markco2