valuations

OK here goes......

Some brokers I believe are manipulating valuations regarding the PDN v SMM debacle.

Most Accurate Resources:
Valhalla (50%)
- Indicated 37.4mlbs
- Inferred 19.6mlbs
Skal 11mlbs

SMM at this stage has 50% of these: 34mlbs

The $6.20 offer values summits EV/LB at $29lb
The $7.20 offer values summits EV/LB at $34lb

(URAsias takeover multiples were $31.61lb)

These valuations peddled by some brokers are misleading. They fail to mention a few things:

They exclude the latest announcements that there are inferred resources (independent third party analysis) of 8mlbs at Andersons & Watta in the MtIsa Deposits Area.

They fail to mention and are assuming that SMM is unsuccessful in its legal proceedings against PDN.

They also fail to properly consider:
Other 100% Mt Isa deposits (excl Andersons and Watta): Summit also owns uranium exploration tenements at Mirrioola, Bikini, Tjilpa, and Warwai. In addition, Summit indicates that it also has access to a further 15 known uranium mineralised prospects within its Mt Isa Uranium Project. Isa South: 9 contiguous tenement applications covering 2,140 sq kms along the Mt Isa Paroo fault.
Georgina Basin: 12,000 sq kms of the Georgina Basin to the west of the Mt Isa Inlier where they are conducting greenfields uranium exploration.
Isa North: Summit has commenced drill testing for a number of base metal targets in the area.
May Downs: Potential gold mineralisation along the Golden Fault structure.
Constance Range: Summit’s Constance Range project covers 1,480 sq kms. Summit has announced its intention to spin out its Constance Range iron ore, phosphate and base metals assets.
Mt Kelly: Near CopperCo’s Mount Kelly copper gold discovery, 95 kms northwest of Mt Isa.

Also on a final note: PDN should be trading at around $17per share at $34lb EV. But I guess the market is not completely sold on PDN as:

- 52% of their resources are Inferred.

TheGimp