D&Ds new recommendation is definitely not as attractive to me as CCC is. The reasons being:
CCC has one project that has an exploration target of 6-7Bt of which 2.7Bt is expected to be mineable. Sure we have not drilled yet but the exploration upside is present. The other company has a exploration target of 2Bt in Botswana and is further along in the drilling than we are. With this alone, D&D has valued them at 120 mil, which is half our market cap. I must concede that they have a uranium deposit too. They are very low on cash.
1. We have bigger exploration target in Botswana. 2. We are a current 2Mt producer. 3. We are a 10Mt producer by 2015. 4. We have cash in the bank and they are cash-strapped.
Management, please make the rubber hit the road and let's get going with Botswana quick.
CCC Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
