Look under "REPORTS" Subject re: valuation of smm: vul takeover Stock Code SMM - SUMMIT RESOURCES LIMITED Posted 10/07/06 11:04 Posted by stolwyk
Post #1141538 - 727 reads In Reply to msg #1117617
A number of takeovers are proceeding and VUL is one of these. It concerns some 70-75 mill lbs Uranium IMHO amd PDN is the interested party.
Because of narrow self serving interests from QLand and who are against mining, any offered price is unlikely to reach realistic values and would be classed as a fire sale on a cash basis, more so because RSG is dead keen to sell so as to carry on with their Gold interests.
While any cash sale is interesting, its relevance to SMM is limited IMHO, because: 1. SMM won't sell and has the initiative and desire to complete their drilling program and develop any mines for production.
2. Its programmed Insitu Resource could after drilling exceed 150 mill lbs IMHO, the number aimed at by SMM. Such a resource will make SMM very valuable to others.
3. One can expect Qland to overturn its no-mining policy in the face of the illogical arguments they have used. Howard's Govt can act also, if needed.
Hence, there is no need for SMM to sell at fire sale prices and their progress will be keenly monitored.
4. The current SMM price is too low considering the research Report from Carmichael-See this thread- which established a NPV of $A3.65/share but based on a low permanent Uranium value of US$40/lb. Current U value is US$46/lb and is increasing.
I have indicated that the Uranium price could increase by as much as US$26 over a 12 month's term since the $40 price was established-See this thread.
Hence, any price for VUL will be too low IMHO and of course SMM will be expected to increase in price as the InSitu values increase.
My exposure to SMM is considerable.
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
SMM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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