RE:RE:a lot of cognitive dissonance going on here....The PEA for FCU indicates things are not coming together beautifully for FCU. The best hope now is continued exploration, hoping to grow R600W, and any new targets. I believe the zones under the lake are as good as dead. I don't believe there is any hostility from NXE shareholders-it is the likelyhood that PLS investment and speculation may now be in question, base on both the PEA and by being eclipsed by another discovery, hence the sense of hostility and resulting cognitive dissonance.
Regarding the DML deal, management "feather bedding" aside, FCU may actually believe that merging an uneconomic PLS resource with DML's other uneconomic resources may be FCU's best place to hide. I believe the plan of becoming the "go to" uranium stock is just promotional "vodka talk" and wishful thinking at best, especially in light of how the markets have responded to DML's financing endeavors resulting in inadequate amounts of flow through at ever lower share prices and the inability to raise hard dollars. Shareholders will have to wait to see if Dev can do a better job at raising the $10's of millions/year that will be needed, regardless of how the vote goes.
It is apparent, at least to me, that most folks will be surprised by NXE's first maiden resource statement when it comes out. In my opinion, conservatively, it will be over 300 million pounds, and I actually believe, based on a mathmatical analysis of NXE's published information, NXE may have over 400 million pounds. Therefore, I believe that NXE's Arrow will be a stand alone deposit. Putting aside that PLS is not economic at today's uranium prices, NXE won't need FCU so why would Arrow and PLS be jointly developed?
EquityInvestor1 wrote: Your entire analysis is flawed since if NXE is the next go to stock that has eclipsed FCU and will likely have 200 million pounds of uranium (addedd to FCU's likely 200 million pounds they will prove eventually) - why won't FCU be developed with a shared mill built to process both company's ore on the western side of the basin? Are not things coming together beautifully for both NXE and FCU? I am not a NXE shareholder (unfortunately I missed the boat) but I am very hopeful that they do well as their success ensures PLS's eventual develooment into a mine. I don't really understand the hostility between NXE and FCU shareholders (perhaps reflects Ainsworth connection and previous association with Alpha - don't know) but despite this, the destiny of FCU and NXE are inextricably linked by each other's performance and as far as I can see - both companies are doing fantastic at this time (despite the manipulated share price of FCU)!
The bottom line is how does taking on DML's uneconomic garbage help us? All of your above concerns are valid for FCU as part of a mergeco or as a stand alone FCU. By merging we are just making matters far worse by diluting any upside from the sale of PLS and vastly accelerating our cash burn. Using your apocalyptic scnario, Wheeler River will not save us - it will just shave another 30% off our share price when the Wheeler River PEA is released and shows that this deposit is uneconomic like its neighbour (CCO's Millinium deposit).
Furthermore, the merger was arrived at dishonestly and recklessly without a good understanding of either company's assets. On this account alone we must stop this nonsense and inject some sound business principles back into the company. I am hopeful that Dev will do the right thing and step aside after the no vote prevails.