EVE - Eve Health Group

YOUNG_TRADER · 19 September 2006

Re: EVE - Energy Ventures

YOUNG_TRADER said:
I just finished doing some research,

I feel sorry for anyone selling right now as I expect 2 More great Announcements in the next 3 weeks,

If you look carefully at ther ann of 26th July you'll note that it stated Infill drilling was being completed for NJAME North AND NJAME South todays ann was for North,

So THERE WILL DEFINATELY BE ANOTHER ANN SHORTLY RE NJAME SOUTH INFILL results

Secondly, Intial Aircore drilling was completed in July for Njame North and South, 2 months later Njames North's infill results are released, my bet is they are nearing completion of the resource estimate and it will be released quite soon, before the end of September IMO, as it doesn't take that long to do once you've got the assays back.

I believe Njame North will be around 5Mt grading 0.03-0.04% for 3.3Mlbs- 4.4Mlbs of Uranium, this is a rough guess at the inferred Resource to be released for NJAME NORTH ONLY (My guess is based on an avg grade of 0.04-0.05% as significant interepts and a tested a strike size of 1km by 1km)

Given that we can expect Njame South Infill results soon, its resource estimate won't be too far off, again I'm estimating a 7.5Mt-10Mt deposit avg 0.02-0.03% (My estimates are based on avg grades of 0.03-0.05% as significant intercepts in Aircore need to see infil, but tested strike is about 2km by 1km ie 2x Njame North)

EVE Mkt Cap = Under $20M
Deposits = 2 so far probably 5Mt each grading 0.03 - 0.04%
So say 10Mt@0.035% = 8Mlb'S U

VS

OMC Mkt Cap = Close to $100m
Very Advanced Deposits, 2 big ones of 6Mt each grading 0.04%
Roughly 11mLbs of Uranium with a good confidence levels,
Well suppoted and cash backed by Instos

Clearly if my estimates are right EVE has room to move

Lets see if I'm right

See bottom part for comparison between OMC and EVE for value,

Damn, I was close with estimate, looks to be slightly larger Tonneage on slightly lower grade,

Lets hope I'm under for Njame South Estimate as well,

Well that was ann number 1, can't believe mkt doesn't rocket this,

Lets see how long we have to wait for Njame South Infill, to be followed with JORC

Good Luck

nizar · 19 September 2006

Re: EVE - Energy Ventures

YOUNG_TRADER said:
can't believe mkt doesn't rocket this,

Yeh well when OMC released their JORC the share price did nothing and actually went down for a week fews after that and was at 25-30c for a while and then it went to 90c for no apparent fundamental reason (a broker rated it)...

Its hard to know what news will make the sp rally, sometimes its drilling results (AGS), other times its a resource upgrade (OXR from 90c to $1.40), and other times its a broker upgrade (like OMC). Of course there are times when these events have happened and the sp did nothing, for example, EVE has results as good as AGS (IMO) and did nothing on the 26/7 announcment, OMC upgraded their resource and nothing happened, and about 10billion brokers said that BHP should be $32-38/share but its not

But im still holding this one, as for is 11.5c a good entry as some one asked, my initial entry was 11.5c a few months ago and im happy to hold this one

I feel one day the market will wake up and it will rally hard to about 25-30c, on what will seem like no reason, but it will be to make up for all the times it didnt rally the last few months when it shouldve!

All the best

ps. And YT, good call on the resource estimate!... i wasnt brave enough to call it...

Morgan · 19 September 2006

Re: EVE - Energy Ventures

hmm....
strange also that the ALB queues at the moment are pretty much all sellers with almost no turnover today.

Beethoven · 19 September 2006

Re: EVE - Energy Ventures

Morgan said:
hmm....
strange also that the ALB queues at the moment are pretty much all sellers with almost no turnover today.

haha yep it feels as if the price of this share is always hitting a brick wall. Up 15% on good news back down to 5% . One thing for sure is this company does have potential and when the market realised that potential this company will rocket. Still holding....

Dr Stock · 19 September 2006

Re: EVE - Energy Ventures

Hi Guys,

I was on another forum and noticed frenzied buying in AEX, EVE, and BMN during morning trade. All got sold down in the afternoon.

Despite the sell off I think the day traders really like the African U stocks.

YOUNG_TRADER · 20 September 2006

Re: EVE - Energy Ventures

I think this should be the last time EVE gets to the 10c level, this is a joke,

The selling suggests a placement @ 10c or less

maverick11 · 21 September 2006

Re: EVE - Energy Ventures

Still going down! What's your thoughts Y_T? You've got a lot riding on this baby

Sean K · 21 September 2006

Re: EVE - Energy Ventures

Opportunity to buy some more perhaps. Pretty limited downside with this I reckon, (as far as speccies go). Might see 8 or 9 cents, but more likely to hang around 10 for a while until more good news is released, which is more than likely.

YOUNG_TRADER · 21 September 2006

Re: EVE - Energy Ventures

It has to be a placement at 10c, there's just too much selling going on and not enough momentum buying,

How can those Nambian operators who are no where near JORC's justify their mkts caps in comparison? BMN $135m or so, WME $50M or so, EXT $60m or so

And then theres EVE's cousin OMC who has a deposit thats far more advanced but only 2x the size, yet enjoys a mkt cap of $90m

It just doesn't add up, that EVE can sit at $15m

hector · 21 September 2006

Re: EVE - Energy Ventures

Hi Guys,

What does a placement mean? Is it options being converted to shares, or institution selling large holding, or company issuing more shares, or what?

nizar · 21 September 2006

Re: EVE - Energy Ventures

YT - if it is a placement i hope it is an "institutional placement" - because if it is to investors (sophisticated or otherwise), most of them will dump on market to make a quick 10-15% or wateva and suppress the share price for several weeks so that it will not respond to positive news.

kennas - agree, Im just waiting for Mantra float before i get some EVEs, hopefully at 10 or 10.5c. These are for the bottom drawer. I think it will go places, but if i post my price prediction in 24 months time for these guys, u will accuse me of ramping...

So i did some calcs... very rough back of the envelope... many many assumptions, but u have to, since they are at a very early exploration stage...

If their final resource is 10.5million lbs, and they are producing at a time when uranium is us$80/lb (still conservative) and costs of us$20/lb (very excessive).

Production of 1.5million pounds a year for 7 years

1.5*(80-20) = us$90million/annum in EBIT

Hmm.... easy us$50million NPAT after taking out exploration expenditure, admin costs, tax....

If u even apply a pe of 8, thats $400million

Say they have 400million shares outstanding at that time, which is reasonable, that comes to a share price of $1/share

So like what kariba said... EVE has all the potential in the world and will reward those who wait...

The above is only my thoughts and opinion and does not constitute financial advise. Please consult a professional investment advisor and/or do your own research before investing.

nizar · 21 September 2006

Re: EVE - Energy Ventures

hector said:
Hi Guys,

What does a placement mean? Is it options being converted to shares, or institution selling large holding, or company issuing more shares, or what?

hector,

its when a company raises cash through issuing more shares, often at a discount to the market price.

the placement can be done to shareholders, sophisticated investors, or institutions

its not a given that EVE will raise money now, but they will need to soon. Only had $1.5mil in the bank as of 30 june...

hector · 21 September 2006

Re: EVE - Energy Ventures

Thanks nizar,
Learning more each day.
Read on another thread that diamond drilling of deposit follows aircore drilling. This would provide better estimate of deposit but is slower and expensive. I expect this is why you mentioned these are for the bottom drawer for 24 months...
Might have a punt.

maverick11 · 22 September 2006

Re: EVE - Energy Ventures

hmmm should i buy some now and hopefully more later or wait to free up more funds and hopefully get in then?

YOUNG_TRADER · 22 September 2006

Re: EVE - Energy Ventures

I read a report which said the following regarding EVE's partner ALB

Drilling at the company’s Zambian uranium exploration JV has intersected potentially commercial grades of U3O8. A resource of 5.5mt grading 0.04% U3O8 and containing 4.8 million pound of oxide has been outlined. While the mineralisation has not been closed off, valuing this resource at $A5/lb in the ground produces a target value for Albidon’s retained 30% interest of $7.2 million.

So arguably EVE's 70% stake can be valued @ $16.5m = 10c per share,

That completely ignores any potential upside at all from the Njame South Deposit, and the other several deposits

So at 10c the company is priced on its assets and nothing else, very very strange for a Uranium Explorer operating in Africa

maverick11 · 22 September 2006

Re: EVE - Energy Ventures

quite strange, i wonder if this is really a good or bad thing?

sydneysider · 23 September 2006

Re: EVE - Energy Ventures

A valuation of A$5 pound for U 4.8 million pounds of reserves at Kariba sounds awfully low for an open pittable, very shallow resource that is open at depth and in three directions. At US$53 pound for spot U maybe a very conservative valuation might be US$5.30 / A$6.89 pound = A$33.3 million, then throw in a "market value of say A$20 million" on the U claims and targets around Kariba and other U claim blocks cash and other assets owned by EVE and we get a valuation of A$53.3 million or 35.5 cents per share.

These claim blocks are high quality for U, OMC next door at Kariba is around 13 million pounds of U with lots of targets. There must be a reason for the massive disparity, the market knows and we are in the dark.

nizar · 23 September 2006

Re: EVE - Energy Ventures

sydneysider said:
A valuation of A$5 pound for U 4.8 million pounds of reserves at Kariba sounds awfully low for an open pittable, very shallow resource that is open at depth and in three directions. At US$53 pound for spot U maybe a very conservative valuation might be US$5.30 / A$6.89 pound = A$33.3 million, then throw in a "market value of say A$20 million" on the U claims and targets around Kariba and other U claim blocks cash and other assets owned by EVE and we get a valuation of A$53.3 million or 35.5 cents per share.

i agree $5/lb is a joke, i think the uranium price will see 3 digits long before it will go back to single digits...

well the Russians think "us$100/lb is a given"
http://www.stockinterview.com/News/09202006/Russia-Bambrough.html

And: http://www.kitco.com/ind/Palha/sep142006.html

as for OMC; id be very suprise if their final resource after this drilling campaign is below 20million pounds. Bungua could be massive

YOUNG_TRADER · 23 September 2006

Re: EVE - Energy Ventures

sydneysider said:
These claim blocks are high quality for U, OMC next door at Kariba is around 13 million pounds of U with lots of targets. There must be a reason for the massive disparity, the market knows and we are in the dark.

Well for one thing the instos are fully aware of who and what OMC are, as they have taken up large placements, which also means that the Insto's know that OMC is fully funded until Feasibility/Decision to mine phase,

The instos probably are unawre of who and what EVE is and if they are aware, would be uncertain as to how they will fund to feasibility, hence why I think there's a placement happening @ 10c or so, thus why we see so much selling above 10c,

Wait and see

Sean K · 23 September 2006

Re: EVE - Energy Ventures

I picked some up yesterday at $0.10.

Another U in the portfolio brings it to:

AEX, EVE, OMC, ARU, SMM, MTN, DYL.

Now looking at AGS again. Looks to have settled a bit.

EVE - Eve Health Group

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