RE: Great buy here/SurfforWealthMore info on the valuation comparison I made earlier of SXR to PDN. As a matter of disclosure I have been in & out but mostly in PDN since late May 2006 at $3.40. I have been in SXR steadily since Oct 31 2006 at around $12.50. Typically I held more PDN than SXR and for a while it offered better value. However the tide has really turned and today SXR offers much better value than PDN. I sold all my PDN between $8.08 & $8.30 as I felt it had run too far too fast. Since Nov 10, when I started a U stock comparison portfolio, PDN is up 39.8% and SXR is down 0.4%. SXR MC 150m shares diluted x $13.35=$2.0B Cdn. PDN MC 515m shares diluted x $7.66=$3.95B Cdn.
Including inferred U resources SXR has 270MM pounds & PDN 220mm pounds. Both have average grades of .08%. SXR is expected to have annual production of 4mm pounds by 2009 and PDN about 6mm pounds by 2009. Both have good production growth profiles from there but the RLI for SXR is far better approaching 30 years in South Africa. Balance sheets are very healthy and similar and cost of production is also similar but likely less for SXR using gold credits (4.5mm indicated & inferred ounces of gold worth $2.7B USD in the ground). Looks like about $14 USD per pound for PDN and $12 USD for SXR using $600 gold credits but there are variables. They both plan to operate in Africa and Australia. One could argue that SXR jurisdictions are somewhat safer than PDN in Africa. They both are working hard to increase their resources.
I am happy to hold both if it makes sense but currently I am double weight SXR and out of PDN as that is what the valuation tells me I should be doing. BWTFDIK, Cheers!!!