RE:RE:New All Time High !!!Zaccar1 if you were around during the last Uranium cycle as I was in 2004-2007 all the best deposits were priced at about 17 dollars a pound for proven pounds in the ground near the peak. Somewhat less for indicated and inferred but total proven getting 17 and this could vary some depending on the cost to get it out of the ground. A large investment firm out of Florida thinks that in this cycle we should see 30 a pound due to stronger demand, global warming, inflation etc. There has been a lot of money printed so 30 a pound in the ground does seem pretty reasonable.
So to crunch the numbers we simply factor in the pounds proven in the ground, number of shares outstanding, price of shares, debt, cost of extraction meaning all in costs and this points us to a price that these shares should be worth at 30 a pound in the ground. Use 25 even if you like but you still come up with a stock price much higher than any have predicted so far.
In the last cycle as the spot and contract prices kept climbing the analysts kept raising their price targets as they will again. If Nexgen does get taken out it will not happen soon I think. Seems to happen most when the cycle is nearing the top. If they mine it themselves we should get a better price per share down the road. They also have a great land package and could hit another deposit that would be a nice bonus but based on what they already have is why this one is my largest Uranium holding. I have also invested in all the other best proven deposits of other companies like Fission, Denison etc. and a few others and of course Cameco as well. I stay clear of all the rest. N3