RE:RE:RE:RE:ValuationInteresting days ahead for sure MBT
I assumed you were talking mill when you mentioned infrastructure. I just threw in the road and hydro poles for consideration. A few posters on both FCU and NXE were kicking around the 200 million$ number around as a rough cost to build one. So yes, if Shea Creek can prove up some lbs, all the better for everyone, not least of all for UEX.
I went to PDAC for Ross' FCU presentaion and stuck around for Leigh's and Roger Lemaitre's speeches as well. I didn't really hear anything I didn't expect from the first two, but I was duly impressed with what Roger had to say about UEX's prospects. When I saw the news about a month ago, I bought in. I got in at the recent peak, but I am anticipating big gains from big hits this summer, with another rise in share price when the whole sector takes off due to fundamentals in what, maybe a year or so?
mybigtoe wrote: Hi Realstone,
I don't think we disagree. FCU and NXE's deposits are fantastic for UEX. Where Shea Creek was rather isolated before, it is now nicely located in the hottest region of the basin. The big infrastructure cost that I am thinking of, and I assume potential buyers of these deposits are thinking of as well, is a mill. I expect there to be multiple stakeholders in that venture. Areva and CGN are presumably already in via their ownership of Shea Creek and FCU. Despite their tax issues, I would be shocked if CCO doesn't get involved in some way as well (in addition to their joint ownership with PTU).
That being said, I think that Christie Lake will have a huge advantage over the above deposits because a new mill will not need to be built. That would be a significant savings for whichever company eventually owns it. Of course, Christie Lake needs to actually prove up lots of pounds before that is the case. Fingers crossed that they are able to do this.
I also agree that there are limited dollars invested in U exploration stocks right now. Lots of it is in NXE. A good sumer drill program at Christie Lake might pursuade some of those investors to take their profits and put them into UEX. I don't think there is much doubt that new money would start to pour in if the spot price would actually cooperate.
Interesting days ahead.
My Big Toe