smm + mtn ... the big differance

If they don't find any uranium, the big differance between SMM and MTN is that SMM (sp .70 ...iv $1.21)has almost reached it's intrinsic value and MTN has a long way to go before it gets fair value (sp .695 ...iv$6.74). SMM has 70% to go and MTN has about 800% to go.
But don't get me wrong. I think SMM is a great company too. SMM is probably the best uranium play apart from MTN in terms of resources owned - exploration potential aside.
Just goes to show what a bit of overseas buying will do. Hopefully MTN will get some of that attention too soon.

Check out the calculations

Comparative calculations
They both have around 70 (m) lbs of uranium but MTN has about a fifth the number of shares.
SMM no of shares: 181,789,247
MTN no of shares: 32,567,895
SMM is about 18% of MTN total worth.
If the intrinsic value of MTN is $6.74.
**18% of $6.74 is about $1.21.**
SMM's intrinsic value is $1.21
It's price is .70 so if SMM doesn't find anymore uranium their is only about .51 left in this stock or another 72%.

MTN is worth $6.74. It's price is .695, so if MTN doesn't find anymore uranium there is about $6 left in the stock or another 869%


MTN's intrinsic value equation

lbs of uranium: 73,192,000
price per lb: US$29.50
revenue: US$2,159,164,000
-20% for uranium lost in processing
post processing: $1,727,331,200
Revenue in AUD = $2,297,350,496
30% cost of production
Profit: $1,608,145,340
No of shares: 32,567,895
Per share earnings over the life of the mines: $49.37
20 year mine life
Per share earnings per year: $2.47
$2.47 Discounted at 40% per year for 10 years
1/1.4 = .714 etc etc
.71 - $1.76
.51 - $1.26
.36 - $.89
.26 - $.64
.19 - $.47
.13 - $.32
.09 - $.22
.07 - $.07
.05 - $.05
.03 - $.03
Total = $5.92
Value to perpetuity: ($2.47/.03) = .82
Intrinsic value: $6.74