quakes99 wrote: What a load of horse manure, Mr. Gitzel62. As usual, you are distorting the truth to suit your own sad agenda. Let's review the differences between Denison and NXE.
Denison has independently compiled NI 43-101 compliant Resource Estimates for over 200M lbs of U3O8 resources - NXE has ZERO!
Denison has multiple Asset Valuations for many projects from several professional analysts based on those NI 43-101 Resource Estimates through DCF and $/lb economic analyses - NXE has ZERO!
Denison has assets in Mongolia and Africa worth over $100M that can/are being monetized to bring in cash to cover exploration expenses that will reduce the need to do equity financings that would dilute existing shareholders - NXE has ZERO!
Denison has part ownership of the world's most advanced High Grade processing mill worth over $1Billion that is ramping up Cigar Lake production to generate $6-8M in cash flow that will reduce the need to do equity financings that would dilute existing shareholders - NXE has ZERO!
Denison has access to 25% of the McClean Lake Mill's production capacity, giving it 6M lbs/year production of the shovel-ready McClean and Midwest Projects which already have had a PEA, PFS, FS, and an approved Environmental Impact Study - NXE has ZERO!
NexGen has NO NI-43-101 compliant resources, no cash flow from other business assets, no diversification, and a large deposit that will need to be infill drilled requiring more equity financing and dilution to NXE shareholders, and will need cash to pay for a Maiden Resource Estimate and a Preliminary Economic Assessment. NexGen is needy... has no income to cover any of its costs, same as Fission.
Fission and NexGen are too much alike. They both need the same thing - more money to prove up resources - and neither has any other source of income than equity financings or JV partnerships which dilute the share value to existing shareholders.
Two needy companies, with one having NO confirmed Resource Estimates or Valuation, is not a match made in heaven. How does that make "infinitely more sense"???? Only a total idiot would think that.... ah... MissingA9 right on cue. :-)
Nice try... but no cigar, Mr. Cameco.
Have a nice weekend. ;-)
giz62 wrote: Quakes wrote "why would fission want to merge with some unknown assets (NXE)"
lol..how about this:
- we could protect PLS from a low ball bid
- we could spin out PLS when the market turns
- a higher market cap with better access to capital
- top tier management and technical team with NXE
Sounds crazy right..funny thing is those are the arguments you put forward for a DML/FCU wedding. A FCU/NXE merger makes infinitely more sense, but we know who is paying your salary...JMO
quakes99 wrote: Why would you want to? Makes no sense. In my opinion it would only serve to reduce the eventual takeout $/lb paid by a major to acquire PLS.
It would be like 2 adjacent houses under construction deciding to merge the 2 houses under one single owner so that they would have to be sold together at some future date. The PLS house is now finished and move-in ready, while the Arrow house is still pouring the foundation and changing the size of the footprint every few weeks. Our house is ready to sell, having had an assessed value given by an independent assessor... but we still don't know how big the Arrow house will be and how much it might be worth.
Keeping them separate, especially given their radically different stages of project advancement, gives us more likelihood of getting a better selling price. Merging them means that the purchase price for the combined properties could be so high that there would be no competition or bidding war to push up the eventual sale price. Only a very large major with very deep pockets would be in a position to buy the much bigger package. And if the Arrow project has higher operating costs, higher CAPEX, then the value of PLS would be diluted in the process.
Today, PLS has an NI 43-101 compliant PEA showing that it can be the lowest cost, highest profit, Uranium mine in the world. That gives us a huge advantage at the negotiating table. Why would any FCU shareholder want to give that up by merging with some other unknown assets? Makes no sense whatsoever at this stage of the game.
Here's to a strong and independent Fission Uranium that will eventually be sold for the best price as per it's $1.02B assessed value!
Cheers!
realty wrote:
Any thoughts on a Fission and Nexgen Merger?
Realty