Undervalued UraniumBayswater, a company that touts itself as a Super Junior Uranium Company(TM), is apparently of the opinion that its venture with UNR’s South Theoln holdings are potentially its most superlative. It has budgeted the lion’s share, no less than 34% of its $20 million annual exploration budget, to South Thelon.
From the News Release:
“The 2007 exploration program in the South Thelon Basin will include follow-up ground prospecting and geophysical surveys. Airborne geophysical surveys will also be conducted in areas not previously surveyed. Based on exploration results, selected targets will be drill tested."
https://biz.yahoo.com/iw/070115/0203156.html
Given the emphasis that BAY is placing on UNR’s Thelon venture, it’s not unreasonable to suggest that the implied valued of UNR’s piece of the action is worth at least 20% of BAY pre-diluted market capitalization of $104 million. That is especially true because UNR is carried to the Bankable Feasibility stage.
Doing the math, South Thelon therefore equals a valuation attributable to UNR of approximately $21 million. To that, add UNR’s cash position of $7 million, and that comes to $28 million. That number is precisely equal to UNR’s current pre-diluted market cap.
Therefore, the balance of UNR’s extensive uranium holding are, essentially, being given away by the market. (A snapshot of these holdings can be found at the link below.)
Sometime, markets can be inefficient. But they typically don’t stay that way for too long.
https://www.uraniumnorthresources.com/ppt/slide1.htm