RE:NexGen Valuation during the Next Uranium CycleI rarely pay any attention to analysts and many of those classified as experts really are not anything of the sort. The folks I refer to as experts have spent their lives studying and working in the industry...like the fuelling engineers and people that run these plants day in and day out. That is where the real expertise is. Or the geologists like James Sykes and the like who really know their stuff. Or guys like Rick Rule who know how to make money at this.Those are the people to listen to. Most bank analysts take a few courses in Uranium markets and are dubbed experts....very few of them have any idea how reactors work or how Uranium is processed from ore into finished fuel assemblies. Unless you really understand every step in that process it is not possible to determine a future price of anything.
At best it is a calculated guess and more often than not bank analysts get it wrong.
So read the real experts and form your own conclusions. What I conclude about NexGen is that $6.00 undervalues the asset considerably and when all is said and done this will be proved to be a billion pound reserve.At just $50/lb that is a 50 billion dollar asset.
Only time will tell.
Malcolm
MegaMAxTZ wrote: "Experts" are estimating this company will move to $6.00 + per share when things begin to really heat up. I believe this is ridiculously low. Some are saying that a Billion pounds are in the main deposits. Even if it is only half the LBS and if Uranium does move to $ 100 + per LB in the next 3 years - the math does not add up.
Could be $ 20 + per share, no ? And if as some here possibly estimate, we see $ 200/LB briefly if the stars really line up..................
A number of these Uranium companies truly are going to present spectacular returns when - not if the dam breaks loose. Investor's Mr and Mrs Smith in their 401K's are going to miss out on a doozy.
MM