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Sienna Resources Inc V.SIE

Alternate Symbol(s):  SNNAF

Sienna Resources Inc. is focused on exploring for and developing high-grade battery metals deposits in mining jurisdictions. The Company’s projects include Elko Lithium Project, Clayton Valley Blue Clay Lithium Project, Clayton Valley Deep Basin Lithium Brine Project, Clayton Valley Silver Peak South Lithium Project, Dragon Uranium Project, Uranium Town Project, Marathon North Platinum-Palladium Property, Stonesthrow Gold Project, and others. Elko Lithium Project consists of 1,840 contiguous acres in Nevada. Clayton Valley Blue Clay Lithium Project consists of 150 contiguous claims totaling 3,100 acres prospective for lithium rights in Nevada. Clayton Valley Silver Peak South Lithium Project consists of one contiguous block totaling 1,812 acres. It owns the 10,845 contiguous acres of Dragon Uranium Project and the 10,357 acres of Uranium Town Project. It also owns the 55,440-acre Atomic Uranium Project. It also owns Case Lake West Cesium and Spodumene Pegmatite Project in Ontario.


TSXV:SIE - Post by User

Bullboard Posts
Post by RX4H1N1on Nov 30, 2011 2:21pm
216 Views
Post# 19279840

Valuation listed in the link

Valuation listed in the link

Valuation

(All dollar amounts are in Canadian dollars unless otherwise specified)

Our DCF-based fair value target of $12.20/share is 352% above the current price of $2.70. We

used a WACC of 12.5% based on the Company beta of 1.92 (instead of industry beta), a risk-free

rate for Canada of 3.0%, a market premium of 5% and a conservative perpetual growth rate of

3%. We estimate the debt-to-equity ratio will fall below 1% in the long term. We expect Orbite to

raise additional funds in the next few months for the construction of the full-scale SGA plant

scheduled for 2012. As equity markets are still fairly unstable, we estimate that Orbite will raise

funds at an average of $4.10/share and we used the 2012 forward number of shares of 210

million to determine the target price.

Bullboard Posts