SMM - Summit Resources

[champ2003]

i think smm has quite al ot of resources, a lot of the deposits open at depth. Remember SMM is a developer, so $10/lb is the standard valuation to apply. so with 100m pounds, they should crack the $1bn barrier easy, straight thru!

Hi Halba,

Where do you get $10/lb standard valuation from?

Best regards

Champ

 

[Halba]

$10/lb is the benchmark valuation for a 'developer', just common knowledge now
of course its probably not accurate as every producer has different costs/locations/grade which impact

56gsa- couldn't get the link to work, said error page not found?

 

[Sean K]

Summit's production is about 7mil pounds in 2010/11. Its a large production profile in one hit, this is what is good.

Halba, do you know something we don't? Where did you get this from? Is it off their web site? In one of their anns? Would love to know more, because this sort of info would normally be included in a PFS/BFS which would mean they are well on the way to production. Cheers.

 

[Halba]

yep heres the link kennas

http://clients.westminster-digital....ite/events/37/video/index.aspx?companyID=37_5

this is a december presentation. says clearly 7.5million pounds of production. And yes they have done a PFS

 

[Sean K]

yep heres the link kennas

http://clients.westminster-digital....ite/events/37/video/index.aspx?companyID=37_5

this is a december presentation. says clearly 7.5million pounds of production. And yes they have done a PFS

Thanks for the link. Not a bad presentation. Makes me a little more bullish on this actually.

Is the PFS he refers to just on the IUJV - Valhalla and Skal deposits? Or, is it the PFS for mining anything they have ready? I think he says that Andersons would be the first deposit to be mined because it's near surface and will be open cut? Yes? Confirming that these deposits are all open at depth and along strike makes this look pretty good.

 

[Jackob]

Summit's production is about 7mil pounds in 2010/11. Its a large production profile in one hit, this is what is good.

I think paladin is producing 2.2mil from LH with expansion to about 3.5mil pounds, and another 2.2 from Malawi. Total about 6-7ish by 2010. So similar production profile going forward imho. Also SMM's deposit higher grade. I am assuming SMM will get 100% ownership of their deposits from PDN.

Not fair to compare to PDN imho. Last i checked paladin market cap $5200M fully diluted. SMM is about $780M fully diluted. Thats 15% of PDN's market cap, for a similar sized resource.

Re: Share issues. Not a valid reason to keep away from an investment IMHO. There are many other ways to keep dilution miminal anyhow(refer Fortescue metals)

Halba,

How much capital would SMM likely raise before going to production? Thanks.

 

[nizar]

Halba,

How much capital would SMM likely raise before going to production? Thanks.

HHEEEEAAAPSS!!!!

 

[Halba]

jackob

I don't think capital raised is going to limit the share price gains..have you studied pdn's share price after its raisings?

To answer your question, about $550m is the CAPEX, and i assume some will be borne by JV partner PDN. Additionally, I think about $150m equity placement which will almost certainly be massively oversubscribed.

 

[Sean K]

In preopen. Must be half year report or those JORCs overdue....

 

[bigdog]

ASX ANN
PDN 10:24 AM Announces Takeover Offer for Summit Resources Limited
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00697318

 

[Sean K]

$5.12

 

[bigdog]

Kennas,

When do you expect trading to begin?

 

[Sean K]

Kennas,

When do you expect trading to begin?

I'm not sure of exactly how long these last. 30 mins???

 

[Halba]

Its a scrip bid fellas. 1 pdn share for every 2 smm by the looks.

 

[nizar]

Its a scrip bid fellas. 1 pdn share for every 2 smm by the looks.

Yeah.
Smart move.
PDN knew SMM would be closer to $10 if they waited till April.

 

[Sean K]

This is going to turn PDN into a company with potentially 200m lbs plus in the ground. SMM valued at $1.1 b? Is that pricey for something that doesn't make any money and won't for about 4 years??

 

[Halba]

i can't believe my luck. i had 1/6 of my free float fund money in SMM!!

 

[chicken]

Yeah.
Smart move.
PDN knew SMM would be closer to $10 if they waited till April.

Looks like PDN wants to buy us on the CHEAP....I value SMM more like $10 a share...going to hold out for more $$$ as $5.12 is CHEAP....just my opinions...but PDN shares with SMM could run through to XXX....so I shall wait and see what the SMM CEO will say....told you this one is good.....

 

[exgeo]

I imagine if there's any good news due out of SMM then this will flush it out. Normally a takeover instills a newfound desire to "create shareholder value" in directors, when faced with a takeover. Don't discount the possibility of a bidding war too. There are not that many companies around with advanced projects or JORC resources waiting to be taken over. EME, NEL, CTS, MTN are companies that I own who have JORC resources. I don't know of any other Australian-listed companies with decent projects - meaning proven resources - (otherwise I would have bought them).

I guess PDN wanted to make their move before the SP increase that could be expected once labor remove the uranium-mining ban in QLD, assuming that they do this.

 

[Halba]

either way us smm holders win. i get pdn stock and that'll run anyway