Strathmore Minerals Corp STHJF

RE: Japan Sumitomo NM

[Ulvetana]

A bit optimistic on the valuation.  There is what you think it should be worth, and what someone will actually pay.  Look at the $ per lb for what URRE just paid to buy Neutron.  Not quite as advanced or as nice of deposits as STM, but still sets a starting point for market value of pounds in the ground for NM.  Based on that, I don't see STM's NM assets going for anything more than $80M.  Churchrock has very little value in its present state no matter what you hear from management.  The mill site they have is not large enough for the proposed operation, and although they may have a Roca Honda permit in a year's time, I have a feeling that it will be strongly challenged.  There is no reasonable milling alternative available to them, and they are at least 5-6 years away from actually having a mill of their own.  Roca Honda has value, but as long as Sumitomo is in the JV, that value is diluted.

I agree that it is time for the company to cash out of all or part of its holdings.  The easiest way to make that happen is for Sumitomo to walk.