This is for 10cents. How to work out the divisor for another...

This is for 10cents. How to work out the divisor for another company, eg, DYL

Number of shares for DYL = 1,108 million
Exchange rate = 0.80
Divisor = shares * exchange rate / US$ per pound

@ US$6/lb, divisor is 1,108 * 0.80 / 6 = 150 (rounded)
@ US$9/lb, divisor is 1,108 * 0.80 / 9 = 100 (rounded)
etc.

So, for DYL, rule of thumb becomes:

@ US$6/lb - divide Mlbs by 150
@ US$9/lb - divide Mlbs by 100
@ US$12/lb - divide Mlbs by 75

Example: DYL's last quarterly report gave 53.8 Mlb JORC resource of uranium. Using US$6 per pound in the event of a takeover, what A$ share price would that be?

Answer: Share price should be 53.8 Mlb / 150 = A$0.36

I hope that helps you work out what the rule of thumb should be for any other uranium company. Sorry I was late back last night from work too tired to do it then.

Back to EXT, now...