RE: Energy Fuels Started At Buy C$5.10I finally got my expensive notebook to "swallow" the report, after deleting many explorer windows
It is a very strange report to me, with strange conclusion.
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First, the production forecast is very cautious compared to others, with a "steady state" volume of ONLY 0.7624 M pounds of uranium and 2.3814 M pounds of Vanadium. The steady state is reached in 2010.
That production with a (low) USD 60 uranium pice falling to 50 later, results in just CAD 0.17 earnings per share in 2010, falling to 0.07 later.
The total (sum of) NOMINAL earnings per share in 2008-2016 is only CAD 1.03.
The present value of the earings these "good" uranium years would only be far below CAD 1.
The total sum of cash flow 2008-2016 is CAD 1.74
The present value of the cash flow 2008-2016 must be around CAD 1.2
Therefore a 2007 price target suggested by ME from those figures would not be over let say CAD 2, That happens to be p/e 10 for the best earnings per share year - 2009.
How the analysts can derive such a HIGH over CAD 5 price target, with these LOW estimates of production and uranium price is incredible !
If these estimates are reasonable I advice a STRONG sale on EFR, but I hope they are too pessimistic.
On the other hand the price target given these estimates is irrelevant, after just having glanced the report. Lots of information are surely fine and well researched I presume.
This report does not strengthen the EFR case to me if the production level is realistic, on the contrary.