Risk vs Reward There have been alot of misleading posts recently about the valuation of FIS...
As per Dundee: "Based on Hathor's $10/lb acquisition cost, we surmise that Fission's existing 60% share of the resource might be crudely valued at between $55 to $60 million, compared to an Enterprise Value of C$58 MM for FIS. However we don't believe that Fission is anywhere near finished testing its highly prospective Discovery Bay Corridor. And with the company accelerating a second project at Patterson Lake South (targeting the source of a 5km x 900m wide boulder field with samples of up to 40% U3O8), we expect heavy news flow this year with a fairly high chance for success and further resource growth."
So given that FIS has the Western portion of the HAT deposit that Rio Tinto will want to aquire (even the entire deposit is a very small drop in the bucket for RTP) then we can use the HAT metrics for a starting point FIS valuation. You have to use EV enterprise value not market cap (bears always forget) for takeout valuation because that includes cash. That is around
.95 per share. There will also be a necessary takeover premium I conservatively assume 15-20% to get the tender. So we are at a minimum of $1.09/share PLUS all future exploration upside prior to aquisition. They have a very busy work program this year and deposits are open at many directions. So thats why I think it could be a big winner this year with very reasonable risk. Good luck!