RE:How to value this one?How to value (in $US)?
They own 2.6 million pounds of physical.
2.6 x $90 per pound = $234 million divided by 120 shares out = $1.95 per share in physical
Current US share price = $2.45
Market cap is $2.45 x 120 million = $294 million
$294 million market cap - $234 million in physical = $60 million value for rest of assets
So 80% of the share price is supported by physical uranium value.
The big question is how to value the existing royalties owned? Are they worth at least $60 million?
Depends on when productions starts and the price of uranium as that uranium produced is sold.
As I see it, the royalties are effectively call options on uranium.
I bought some for the same reasons that you did. I like that so much of the share value is supported by physical and I like that they have a royalty business that could amount to something meaningful if they can start doing some new royalty deals. To date, they have only purchased existing royalty contracts that were put in place by others. I don't know what sort of demand exists from uranium miners for new royalty deals nor what sort of terms the company will be able to negotiate. So assigning value to the "royalty" business model aspect of the company is tough to do at this point because they have not originated any deals of their own yet.