i hope the buyout wont happen, before the share reached a price, that reflects the value of the deposit.
which price would you suggest, WIM?
I do not have a crystall ball, so I cannot make predictions.
But if you look at the amounts of U in table 1 (4524 mmlb) and discount this by 90% the shareprice could be $ 42, given an in-situ value of $10 per pound
In the Fairfax report Elliot makes some comparisons with Valencia and Trekkopje, which results in a shareprice for XE of sometwhere between $ 18 and $ 66. (Note that the average between $ 18 and $ 66 is $42 )
There are still a lot of uncertainties. There could be more U than thought earlier. Or less. Grades could be much higher than the 100 ppm Elliot uses, or so low that they are ineconomic. The exploration process is still in a very early stage. The in-situ price of U could be less than $10, or more (Mc Dowall thinks a pound could be worth $12) Or, as Funkey mentions, maybe the Orange River cannot provide enough water and a mining company will be faced with high costs to get the water there.
I think that the price will depend on the speed of the events that will follow. A prospective buyer will try to move fast forward, once sufficient resources are proven, in order not to let the price go to high. Xemplar, on the other hand will try to speed up the exploration process, by bringing in more rigs. (Which are hard to find)
I guess there is not much that we can do but hold on to our shares and see how this adventure unfolds.
