re: lets be realistic! sim or smm? I think there is room for...

re: lets be realistic! sim or smm? I think there is room for both SIM and SMM.

SIM is the more speculative stock. However, in Canada, they pay good money for explorers who haven't as yet found Uranium, example CVV: 38 Can. cents.

I do believe that SMM is heavily underpriced as nothing has been allowed for the 70 mill lb Uranium out of the 125 mill lb, SMM holds.

They are drilling there to double the resource.

Sure, so far SMM hasn't got permission to mine it, however. with rising U308 prices and the demand, it will be approved given time.

Of course, the Green's attitude is more positive now and the Chinese are looking for deals too. They are bound to have discussions with the Queensland Govt on mining anyway.

This is one of my heavier investments as I take the attitude that as uranium prices increase, the value of the uranium deposit increases and the share price needs to increase as well.

I guess that the price of uranium (U308) increases by some 20% a year.

And once the approval comes through, there will be a massive scramble to get in.

I have suggested thast the current SMM share price may or may not pay for all assets except the Uranium.

For $A1 market cap, we get about $A95 worth of SMM uranium in situ. That is not based on doubling the resource (SMM's 140 mill lb) but on 120 mill lb. That will be subject to drilling results.

So, when the mining approval comes through, what will this be worth?

(I did say that the current price could just about pay for all assets (32 cents per share) except uranium which costs nothing at the moment IMHO).

Will the share price rise to 100, 125 cents or more? Remember, prices of uranium are increasing in the meantime.

To me it is a matter of waiting, the short term trader may be looking for something else once the share price has exhausted its current run.

Uranium shares are speculative.

Gerry
Holds both SMM and SIM
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