RE: KRI analysisI use USD 80 for the moment as a long term (weighted) average assumption for the uranium price, even if it is more than that, which I expect, in 2010.
But using a long term average combined with a rather "normal" p/e 10 seems fair I should get a fair valuation. I could use the more realisticly USD 100 and p/e 7.5 and end up at the same price target(if you examine my calculation thoroughly). In the latter case with still a bullish sentiment for uranium in 2010 maybe p/e 7.5 would seem low to many.
As far as dewatering costs I have found no mentioning of this at all, even if you can see the little lake. But since I count with a lot of further stock dilution, probably later at higher stock price, and Khan had some USD 31 Million in cash as of February, I find it is not necessary now to deduct anything before the DFS is out.
Furthermore you might take into account the huge total risk discount of 42 % which i have applied on the price target, and maybe dewater costs could be said accounted for there instead
Anyyhow I find my price target fundamentally rather reasonable, and in line with my other calculations of UMN, EFR, PWE, UPC and URE on my web page www.loparn.com