valuation of thr

Mutty Webdog,

i am like you and believe in the THR story.
we have some knowlegable posters on board with Conix and Oly and Co and i believe patience is the key here. There is a heap of U in the land THR is sitting on and the double checking of the Moly samples is a great thing as the results seem almost too good to be true.

I have re-read the Hardman report and have included the summry of the article for you below. The final paragraph gives a valuation of 37.6 pence (or 80c+ $A) so at prices of 37c as per today i think we just got to accumlate and build up a good core holding and sit tight!!


Hardman Report http://www.thormining.com/docs/downloads/Thor%20Mining%20Initiation_June_07.pdf

Conclusions

Molyhil may be a small mine by today’s standards but it does look profitable on paper and should be in practice. The main risk to Molyhil is geotechnical, but this can by managed by good pit design and mining practice. The time spans involved with the open pit section of the Molyhil Mine mean that only the most severe changes in market conditions will affect its profitability.

Thor Mining should begin to bring Molyhil into production as soon as final permitting, marketing and financing can be arranged. Though it is a relatively short mine life as currently covered under the DFS, Molyhil has underground potential and our feeling is that if grades and mineralogy show good continuity down dip it should be economic to go underground at current metal prices, especially if recent drilling results are repeated. One of the largest underground tungsten mines in the western world operates in Portugal at around 0.25% WO3, so with a current average grade of over 0.5% WO3 at Molyhil Thor can take some encouragement, though the mine working method is likely to be different. A future feasibility study will have to be undertaken to define the potential for underground working at Molyhil.
The low capital development costs (<£20m) and quick rate of return should turn Molyhil Mine into a profit-maker with the cash flow generated by open pit operations able to finance down dip and step-out exploration. Excess revenue should be available to fund further exploration of the uranium prospective tenements with the aim being to produce JORC compliant uranium resource estimates without large amounts of external financing.

Due to the current nature of the uranium market it is less likely that Thor would be able to bring any of those uranium assets into production and retain 100% ownership. At this stage it seems more likely that the uranium assets be the subject of a JV with a company that already has processing, marketing or export capabilities. The plethora of junior uranium explorers present both in Australia and Canada will undergo further M&A activity as the market matures and a new breed of uranium explorers find company-makers. Thor currently has the potential to be acquisitive or be acquired dependant on the results of their exploration. The drilling results are encouraging so far and are keeping Thor’s options open.

The profitable operation of Molyhil Mine will ultimately define the future of Thor Mining, whether it divests any uranium assets and continues to grow by drill or by bill, or whether it chooses to change direction as opportunity knocks. We know that its management will keep us well informed of their successes and set-backs. We anticipate that as the shareholder base matures and the mine comes into production recent price volatility will even out and the share price should move up to the real value of Thor’s mine and prospects.

The risks are low. The rewards are an AVPS of 37.6p at a 10% discount and significant upside in the current hot metal – uranium.