much much better than expected I cannot believe that the "FAIR...

much much better than expected I cannot believe that the "FAIR VALUE" of NuPower's uranium assets has been set at $7.3mio. This would have to make it the CHEAPEST URANIUM PLAY ON THE MARKET.

From my quick read:

Every 3 ARU shares will get you 1 NuPower.

the strike price of the ARUO's will be reset to $0.13 (as the accountants have deemed that the uranium assets are worth 34.01% of the "book value" of ARU).

So essentially, the company is saying that ARU is worth $47million. And this comprises ($16.1m worth of NuPower and $31.2m of the remaining ARU).

The 44m odd shares to be issued in NuPower will be capitalised at $0.20. So that is where they will "list."

The market, therefore, has to make up its mind, how much the NuPower entity is.

Using the following share prices.

40 cents NuPower = market cap $17.6m

60 cents NuPower = market cap $26.4m

80 cents NuPower = market cap $35.2m

$1.00 NuPower = market cap $44m

(all figures should note, the $8.8m of cash/cash equivalents that NuPower will hold).

I am guessing, that NuPower should list somewhere EASILY between the 60cents to 80cents range. So at a 3 for 1 issue, this puts a market price tag of roughly 23cents "premium" for Arufura.

So, if the current number of ARU shares are 118million (thereabouts), and the market is factoring a 23cent price tag, then if ARU trades back around 50cents after the process, it will be worth $59million. So, the value proposition then becomes - do you think ARU is a $59 million dollar company.

The NuPower issue will be an absolute money spinner, and I am in shock as to how cheap it has been valued "on the books".

I know that these in-specie distributions are money spinners, but this is ridiculously cheap.

I will be in and out over the evening, but for now, I am off to buy a 50 inch plasma TV.

Cheers,

PT