the big drums are starting up for smm, page-33

So, arising from my previous post, what is the extra 65 mill lbs (The previous estimated RSG holding) worth to SMM?

SMM has about 202 mill full. diluted shares and the current price is about $4.50/share. The total market cap is about AUS$909 mill. That is for the current approx SMM holding of about 100 mill lbs of Uranium. ( We need a Jorc update to get the correct amount).

One lb of U is therefore worth a very low price of 909/100=$9.09

From my previous post, it would cost SMM about AUS$2.15/lb U for the 65 mill lbs previously held by RSG.

That leaves a net value "profit" of $9.09-$2.15 or say AUS$6.94/lb. For 65 mill lbs, that is AUS$451.1 mill or per share: 451/202=$2.23 extra per SMM share.

I have always maintained that the current SMM price ought to be $10/share. That would be per lb of U: 202*10/100=AUS$20.20/SMM share.

If the market would pay $10/share, then the 65 mill extra lbs of U, previously held by RSG would result in a net *increase* in share price of (20.2-2.15) *65 mill/202=$5.80/SMM share.

So, roughly speaking, should SMM win in court, then I would expect an *increase* in the SMM share price of $2.23-$5.80, IMHO.

Subject to audit,


Gerry
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