If the demand for nuclear energy increases around the world and era get approvals and make more uranium dicoveries $20+ after 2017. If Jabiluka is ever approved add $5 to that. If the price of uranium doubles its current value add another $5 to the price.
I think it's unlikely era will make more discoveries of any significance considering how long they have been mining for and the approvals needed for the ranger deeps will take longer than expected as you only have to look at Jabiluka to realise that.
With China slowing in growth the big share prices of uranium and uranium companies won't be seen again for years to come.
You will however see ERA and PDN trading in the $1 to $2 ranger for the next 12 months. No matter how good it seems. Now is not the time to buy ERA shares unless you are prepared for it to plummet to new lows. PDN is much better value under the $1.20 mark. Personally, I feel era will plummet to 80c sometime in the next 12 months but could just as easily get to $2.70 by the end of the year if there is a rally in world markets.
ERA Price at posting:
$1.44 Sentiment: Hold Disclosure: Not Held
