RE:Mythbusting the $6 per LB takeover valuequakes99 wrote: There have been a number of bashers on this board who have said that the "analysts" have reduced their U3O8 $/LB takeover value of FCU to $6 or $8. The figure of $6 has been used a lot to depress shareholder expectations on a takeover share price. Well.. I'm putting out a challenge for anyone to provide analyst reports that support that assertion! I've just gone through a few reports and those are not the numbers I come up with.
For example...
Dundee report October 6, 2014.
We continue to estimate a potential mineral inventory up to 80 MM lbs grading 1.63% U3O8.
Price Target $2.10. NAV $2.09
Fully Diluted (400M shares): 400Mx$2.10= $840M market cap / 80M lbs = $10.50 per LB U3O8
That's nowhere near $6/lb and just shy of the Hathor $11.34/lb final offer by Rio Tinto.
$6 Basher Myth or not? Show me your evidence!
With 105M lbs we have enough uranium for a standalone mill. Not to mention NXE next door who certainly has some too. I believe this was the argument for the lower price per lb.
Critical mass has been achieved after only our maided estimate! Absolute low end should be $8/lb now but should be higher IMO based on the open pit possibilites of the RRR.