FSY ValuationFirst of all I my guess that Kepco is involved in the purchase of FSY. I know they need Uranium for their operations and were also in talks with FSY regarding financing so seems like a good fit to me.
Now let's do some math:
- based on what I'm hearing the latest drill results will bring up resource count to between 80-100 million lbs
- the last take out was Uramin at $18/lb in the ground. Of course Uranium was much higher and the market was more favorable then so FSY will not get $18 / lb today.
- FSY has ~44 million in cash
Now let's use the 80 million lbs for our calculation and let's use $8 / lb in the ground.
80 x 8 = 640 mill + 44 mill cash = $688 million
~80 million shares outstanding brings us to $8.60 / share
This does not include any other properties or the potential to further increase reserves.
Anything below this figure would be disappointing to me. I think FSY would easily trade in double digits again as they get closer to production.
IMHO
Good Luck to All!