what the brokers say

Extract Resources (EXT); Foster Stockbroking; Speculative Buy recommendation; Share price target of $1.50; Last traded at $1.16

FOSTER has put a speculative buy recommendation on Extract not just because of its tenements near the big Rossing uranium mine in Namibia. It is also because of the rising oil price, which has generated new interest in the uranium sector. Extract's Husab project in Namibia borders Rio's world-class Rossing mine and is just 25km to the west of Paladin's Langer Heinrich operation. "The area was previously explored by Anglo-American, which recorded strong readings but was abandoned due to the low uranium price at the time," Foster said in a note to clients on Friday. "Extract is currently drilling at Rossing South with very positive results from the spectral radiometric assays. The results remain provisional until the chemical assays are returned in coming months." As Foster also points out, British-based uranium company Niger Uranium recently took a 1.8 per cent stake in Kalahari Mineral, Extract's majority shareholder with a 36.2 per cent stake.