SMM - Summit Resources

[mmmmining]

Acorn Capital Limited is selling. According to my experience, the odds are bad if you go against them. They are pretty good at selling..

Don't know the reason, hopefully because SMM is not a micro-cap anymore. Or valuation is too rich? Worth taking some further investigation....

 

[Halba]

i have faith in SMM's management. atleast they have a mine plan of production of over 3500t of uranium per annum. the cash flows is enormous on any calculation.

the resource size/expansion takes care of itself, theres enough resources in that area the size of belgium

think ERA but without the hedging

 

[lancer]

I am glad SMM is no exception to a lot of u's making new highs!

 

[Halba]

hi lancer it is indeed comforting

i have a few losses in this mkt unbelievable

 

[Go Nuke]

Could SMM turn into another producer perhaps?
Follow in the footsteps of PDN and ERA??

 

[Halba]

have a look at some of SMM's older ann's

 

[Sean K]

Could SMM turn into another producer perhaps?

I ´m sure the company is hoping for that, GN. Will take a few years to start processing after QLD gov change the laws, or the Fed Gov take over the decisions to mine from the states. Assuming Libs stay in. I still haven ´t seen the JORCs they promised before New Year.

 

[dj_420]

spoke with director kennas

i think they are planning to release all JORC deposits at once. they are currently having their resource estimates checked by their independant geologist guys and are waiting on some final results from the lab.

i think it will be one cracker of an ann if they release six JORC figures at once.

 

[Halba]

i confirm that. 3 of the deposits may be released at once

bear in mind these are all just initial jorcs- they are all open at depth and usually in all directions

 

[Sean K]

i confirm that. 3 of the deposits may be released at once

bear in mind these are all just initial jorcs- they are all open at depth and usually in all directions

Hi guys, Any chance this could be a 'buy the rumour and sell the fact' situation, or will the ann will be a real sp rocket. I obviously hope for the rocket, but we've seen a few other solid anns come out and the sellers take over....time will tell. I sold half before I left for Mexico and have watched the sp rise quite nicely. Looking for another reentry oportunity....

 

[chicken]

i have faith in SMM's management. atleast they have a mine plan of production of over 3500t of uranium per annum. the cash flows is enormous on any calculation.

the resource size/expansion takes care of itself, theres enough resources in that area the size of belgium

think ERA but without the hedging

The CEO of this company is a New Zealander with a law degree...and knows SMM s business backwards as well as forwards...so we got the top man for the job....as soon as SMM gets the green light to produce as I said before that this SP is going like a rocket....and its looking as if the market agrees as there seems to be no way stopping this price rise...bar the change of policy...which we all hope its going to happen...then it will be like a rocket...look at ERA and PDN s price....I shall take a punt and add a few more to my position....intresting times ahead...if it happends...dont know, I shall just take a chance...and it might just make me a heap more $$$$$$.....

 

[Halba]

hi kennas. it could be a buy on rumour sell on fact, but i mean these things are so hard to predict. Even if it is sold down it will be temporary IMHO as there is scarcity of quality Australian deposits/producers IMHO.

Scarcity = means price will get pushed up gradually over time

 

[rederob]

hi kennas. it could be a buy on rumour sell on fact, but i mean these things are so hard to predict. Even if it is sold down it will be temporary IMHO as there is scarcity of quality Australian deposits/producers IMHO.

Scarcity = means price will get pushed up gradually over time

Summit will go nowhere fast until uranium mining is allowed in Qld, and Beattie probably has another term after the present one (which commenced late last year). That makes around 5 years of waiting for some price action.
Good results mean diddly squat if you can't use them!

 

[Halba]

rederob are you up to date?

"Queensland Premier Peter Beattie has indicated he will change his stance if federal Labor drops its ban in April."

http://moneymanager.com.au/articles/2007/02/10/1170524337368.html

April isn't 5 yrs bud

Also Assuming SMM reaches its exploration target of 150 million pounds in 12 months, its EV/lb will be $5/LB, which is 1/2 of a normal explorer, and much less than canadian peers/paladin

 

[rederob]

Queensland Premier Peter Beattie says he is yet to be convinced of the benefits of allowing more uranium mines.

Federal Labor leader Kim Beazley has announced that the party's three mines policy will be open for debate at its national conference next year.

Mr Beazley is in favour of allowing more uranium mining, but remains opposed to uranium enrichment and nuclear power.

Mr Beattie says there are genuine concerns about waste disposal.

"I think the nuclear industry's got a major problem in overcoming those things in public debate," he said.

"I understand that we are talking about export and export only but nevertheless those issues about waste nuclear proliferation all those need to be dealt with.

"Nuclear proliferation can be dealt with by virtue of a treaty but there are major issues in relation to waste which I don't believe have been resolved for the nuclear industry."

Mr Beattie says he would want to ensure the future of Queensland's coal industry if more uranium mines were allowed.

"I am concerned to make certain that the future of the Queensland coal industry is guaranteed because we have 300 years' supply of coal," he said.

"That's why we're cleaning up the coal industry by developing clean coal technology."

Subsequently Beattie has stated he will abide by Labor policy, if that changes.
Hard to see Labor changing policy so quickly, but maybe it will.

 

[rederob]

I forgot to add, Beattie will be in no hurry to "approve" an actual mining operation should policy change.
Environmental and indigenous issues alone could take many years to resolve before a sod is turned.
I am personally ambivalent about uranium mining.
I hold a good number of PDN, and believe that any investor wanting to ride a profitable trade needs to ensure they choose a uranium equity that CAN mine what they find, unencumbered.

 

[Halba]

rederob i can understand but no point slagging SMM about this issue

it has been debated to death lets just talk about its actual resources

 

[lancer]

Summit will go nowhere fast until uranium mining is allowed in Qld, and Beattie probably has another term after the present one (which commenced late last year). That makes around 5 years of waiting for some price action.
Good results mean diddly squat if you can't use them!

You forgot your signature that says "I have no idea what I am talking about!"
How on earth has the price gottyen where it is if it cant go anywhere without mining...

 

[coyotte]

SMM :

bottom regression channel would appear to be around 3.30 on mon 19/2 ---top regression around 3.88 -- so whilst within the channel it is at the higher levels , should be due for a correction to at least 3.57 come Mon/Tues


Disclosure : hold long position


Cheers

 

[rederob]

halba
My point is that a lot will need to take place before SMM gets any cash flow from its excellent finds to date.
SMM has already run up well in price, and I don't doubt that it can go higher.
But there will be a fair bit of money to raise, share dilution, and a reasoble number of years waiting: The latter was not an issue for PDN, nor will it be for its next few projects which are significantly more advanced than anything SMM has.

lancer
I am sure you have a point.
Exactly what is it?