Tigris ValueWould be nice to see the shareprice move with uranium as it goes up. The way it looks today, Tigris goes down with U3O8, and it goes down when U3O8 goes up.
Their latest SEDAR filing for the quarter ended April 30th showed $12,750,154 in the treasury. It is possible the new royalty agreement has resulted in a payment of $2.75 million US. Not sure about the conversion rate between USD and CAD, but either they have $12.75 or $10 milion of cash. Divided by the number of shares, the cash per share in Tigris is 21.5 cents at $12.75 million in the treasury, and 17 cents at $10 million.
This means the 34.5 million lbs of indicated resources of U3O8 is valued at -0.5 (not a typo) cents per lb for $12.75 million in the bank, or 7 cents per lb for $10 million in the bank at today's shareprice of 21 cents. I guess if we're paying a premium for being run by the former Energy Metals team, which we should, the uranium is worth even less.
Believe me when I tell you I've looked, and I can't find a uranium company with as low, or lousy if you will, valuation. For a buyer, this is good news, and for a shareholder, it sucks. Uranium is classified as resources or reserves. Resources are worth less than reserves. Hathor is being paid somewhere around $8.50 per lb for their resources. Kivalliq is valued at around $2.00 per lb. UEX at $1.50. Strathmore at
.50.
Do the math ... ((U3O8 Resource Price * 34.4) / Number of Shares).
.50 per lb gives 29 cents. $1.00 is 58 cents. And so on. Let's assume cash value and management premium is 20 cents, and you're looking at for
.50 per lb a value of 29+20 cents, giving a 49 cent shareprice. It isn't rocket science. Yes, the companies mentioned have two resource classifications for uranium, and various grades and other factors. For example, we've got in-situ recovery which is a hell of a lot cheaper than what you're looking at in conventional mines that need a uranium price above $50 USD. I'm guessing we're going to turn a profit at a price above $30 USD, give or take. Not saying it's going down to $30, I'm just saying we've got a lot of upside.
Nobody can convince me there is any sense at all to the valuations in the uranium sector. Nobody. There's no reason for our uranium being valued at zero and Strathmore at 50 and Kivalliq close to 2.00. Nobody sat down with their calculators in massive thinktanks and decided this is the right price for each of these companies. Secondly, most of these companies are loaded with cash. More loaded than friggin shell companies speculators "bargain hunt" for. These guys could take their money and go out buy projects in a completely different sector if that's what they wanted to do. Especially Tigris since they have zero debt and no work commitments.
Arm yourselves with the knowledge above. We shouldn't be parked at 21 cents. It's a mistake by the market. An anomaly. The shareprice is ridiculous.