This thread relates to companies, news etc that surrounds ASX listed uranium explorer Extract Resources (ASX:EXT) - http://www.extractresources.com/. Extract's latest investor presentation can be found here: http://www.extractresources.com/DesktopModules/Bring2mind/DMX/Download.aspx?EntryId=3389&PortalId=13&DownloadMethod=attachment . The attractions of Extract are:
a) It has consistently underpromised and overdelivered
b) It has made one of the most significant uranium discoveries in decades, in politically stable & mining friendly Namibia. [It now has Namibian govt linked directors on its Board]. Once fully scoped its undeveloped resources are likely to be at least 550Mlb of U3O8, according to Kalahari's chairman. 292Mlb of JORC resources are currently declared, with exceptional grades for the ore type (439ppm average). An independent estimate, based on drilling results released up to 18Feb2010, suggests that a total of at least 434Mlb should be identified in the next JORC estimate. Recent trade sales indicate a value of US$6/lb is conservative for undeveloped resources - suggesting US$3bn as a conservative valuation.
c) It has attracted the interest of Rio Tinto, who have substantial shareholdings in Extract and Kalahari. If you study the 2007 and 2008 "stakeholder reports" for Rössing Uranium, you will see that the existing Rössing mine is in need to new ore sources: http://www.rossing-com.info/reports/stake_report_2007.pdf and http://www.rossing-com.info/reports/stake_report_2008.pdf
d) The initial scoping study for developing a mine has indicated a target production rate of ~15Mlb U3O8 pa. This rivals production from the world's largest current U mine at McArthur River, Canada (which has reserves of 333Mlb by comparison to Rossing South's resources). Indicative cost figures will also place Rossing South amongst the world's lowest cost producers.
Disclaimer
The author may hold shares in this company, all opinions are his own and you should check any statements that appear factual and not rely on them before making an investment decision. The author is NOT a qualified analyst nor authorised to give investment advice.
