SMM - Summit Resources

spooly74 said:

Yep, oops 2.04 for 1.
again .. no thankyou

Click to expand...

PDN offer

I have no interest in settling in for the PDN offer either. 2.04 for 1 offer is an attempt of PDN to cash in the profit that is most likely to flow into the SMM share holders.

No thank you for me! I will stick with SMM as I see that there is a lot more upside potential to SMM as opposed to the offer made by PDN and by sticking with SMM.

ann out

More results from Andersons
highlight 51m @ .16% u3o8 from 17m

spooly74 said:

ann out

More results from Andersons
highlight 51m @ .16% u3o8 from 17m

Click to expand...

SMM 1:40 PM High Grade Andersons Drill Results
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00701858
http://www.asx.com.au/asxpdf/20070312/pdf/311f0t0kv7pklx.pdf

SUMMIT’S 100% MOUNT ISA URANIUM PROJECT
HIGH GRADE ANDERSONS DRILL RESULTS

51m at 3.83lb/t (0.16%) U3O8 and 7.59lb/t (0.34%) V2O5

Grades up to 9.18lb/t (0.42%) U3O8 and 15.47lb/t (0.70%) V2O5 over metre intervals

Summit Resources Limited’s (“Summit”) Mount Isa Uranium Project expands with further drill results reported from the 100% owned Andersons deposit near Mount Isa.

Wide zones of high grade uranium mineralisation encountered in drill holes at Andersons include 51 metres at 3.83lb/t (0.16%) uranium oxide (“U3O8”) and 7.59lb/t (0.34%) vanadium pentoxide (“V2O5”).

Grades up to 9.18lb/t (0.42%) U3O8 and 15.47lb/t (0.70%) V2O5 over metre intervals are reported in Summit’s latest drill holes.

High grade uranium vanadium mineralisation outcrops at Andersons and now consistent widths and high grades down to 300 metres depth have been encountered in Summit’s drill holes into the mineralised system. The deposit remains open along strike and at depth.

Drill hole details and mineralised intersections in this report are as follows:

ANDERSONS Uranium Target
Andersons uranium deposit is located 15 kilometres east of Mount Isa city on EPM14047.
Summit has now drilled forty four diamond and eight RCP holes at Andersons totalling 9,270 metres of drilling. Assay results are reported for nine holes (ANDDH15 to ANDDH24).

These reported drilling results are consistent with previous drilling of the deposit. All holes intersected uranium mineralised sediments and conglomerate with mineralised sections ranging from 2 to 51 metres down hole.

SUMMARY
Drilling is ongoing with two drill rigs operating around the clock for Summit in the Mount Isa area.

Summit’s drilling at Andersons has confirmed previous drilling on the deposit and a resource estimate is now being modelled, calculated and independently audited for the deposit. This JORC compliant resource estimate for Andersons will be calculated and released on receipt of the assays for holes ANDDH1 to ANDDH30. We have today been advised the assays for the remaining 6 holes will be reported in the next 10 days.

Further holes are being drilled, or are planned for, Summit’s Valhalla, Andersons, Skal, Bikini, Mirrioola and Watta uranium deposits and prospects at Mount Isa. The objective is to have sufficient density of drilling in each deposit to enable resource estimates to be calculated.

The Western, Mixabe, Tjilpa, Red Alpha, Warwai, Rich John and Drum uranium targets will also be drilled when rigs become available.

The uranium vanadium mineralisation in Summit’s Mount Isa uranium deposits and targets drilled to date is hosted in iron oxide copper gold (“IOCG”) hematite altered sediments and felspar breccias. A common metallurgical treatment process to recover the uranium, vanadium and copper metals present in all Summit’s Mount Isa uranium deposits is being developed. Metallurgical testwork is now underway to establish a standard metal recovery process for all deposits.

Deposit and prospect locations and details of the holes drilled and reported for Andersons are shown on the attached map and table.

Uranium oxide spot price is now US$90 a pound.

Analysis: these are some world class drilling results and reinforce the SMM story. However they are factored into the stock price.

ABC news March 19

http://www.abc.net.au/news/newsitems/200703/s1875867.htm

Summit rejects Paladin's $1b takeover bid
Summit Resources has rejected $1 billion takeover bid by Paladin Resources, describing the share offer as inadequate.

The company controls about 25 uranium deposits around north-west Queensland worth an estimated $400 million.

The managing director Allan Eggers has advised shareholders to turn down the bid because of the timing of the Paladin offer.

He says investors should be patient because the company's value may soon improve.

"There's litigation in train that we have in the Supreme Court and should Summit win that litigation, and we believe we will, then we will have the opportunity to consolidate the ownership of the Valhalla and Skal deposits in Mount Isa and then Summit will control 100 per cent of the projects," he said.

Thinking of liquidating my stake in SMM. I feel there is no upside on this stock in the future. Mngmt seem inept and after promising resources(4-5) by end of last year, have not delivered the upside as promised. PDN has exposed the ineptitude of SMM mngmt in their 14 page statement yesterday.

Halba said:

Thinking of liquidating my stake in SMM. I feel there is no upside on this stock in the future. Mngmt seem inept and after promising resources(4-5) by end of last year, have not delivered the upside as promised. PDN has exposed the ineptitude of SMM mngmt in their 14 page statement yesterday.

Click to expand...

Mate....You got NO idea...sell your stake..as PDN want people like you to do exactly that.....SMM...CEO has run this company since the 80 and its taken 26years to be at where we are...now that SMM will have the right to produce if the labour policy changes you want to jump ship...well, GO as the company is worth A LOT MORE...but you allways post negative stuff...so sell your shares as there are a lot of people wanting them....

Halba said:

Thinking of liquidating my stake in SMM. I feel there is no upside on this stock in the future. Mngmt seem inept and after promising resources(4-5) by end of last year, have not delivered the upside as promised. PDN has exposed the ineptitude of SMM mngmt in their 14 page statement yesterday.

Click to expand...

Hi Halba,
I see immediate upside for this stock in a matter of weeks when the resource upgrade for Andersons, Bikini, Mirrioola and Watta are released, or do you think it`s already factored into the share price?

SMM mkt cap already nearly a billion dollars? There are heaps of companies at that mkt cap but make $$ cash flow. Plz there is a need to have some balancing posts.

Halba said:

SMM mkt cap already nearly a billion dollars? There are heaps of companies at that mkt cap but make $$ cash flow. Plz there is a need to have some balancing posts.

Click to expand...

You talk about balancing posts.....I thought this is about SMM and Value....as far as posts...come up with figures not just words....as your research we are intrested in not..I am selling my SMM...give us one reason to follow you...there is none just...PDNs wisdom...and you know for the reason there...SMM is a very valuable Australian assets...as I said before..the CEO has been running this show since the early 80s...and has assembled these assets over 26years..not a fly by night but an emerging Uranium producer when the Labour policy changes..that is if it does...SMM will be worth a lot more than PDNs offer...so why take it, before the labour meeting...very opportunistic I thought...as I will not action their share offer but wait....

Why are the jorc's taking this long? You haven't addressed the point about the delay.

Does the delay really matter?
It hasn't hurt their share price (yet) and from the ann on the 2nd of this month, the resource estimates are currently being modelled, calculated, independently audited and are due "within the next month" (April) . . . . I take this to mean the results are not in the hands of the labs anymore.

If managment can't get the results out before the date the Paladin offer expires, that would concern me . . but I`m prepared to wait the couple of weeks.

I also note "they were being modelled, calculated, blah blah" in sept/october last yr? Where are the results? This mngmt ineptness is concerning.

Halba said:

I also note "they were being modelled, calculated, blah blah" in sept/october last yr? Where are the results? This mngmt ineptness is concerning.

Click to expand...

The hold up was at ANTSO from what I recall. Not managements fault. They should however, be keeping the market informed of their progress regularly. Which they don't seem to be. You'd think they'd be making sure they were on top of information flow at this point.

Yep company disclosure is poor.

Halba said:

Yep company disclosure is poor.

Click to expand...

You find 26years of company disclosures...how much do you need...ITS ALL THERE for you to read....I have bought from 5cents to $4.45.....and this is only the start...the CEO knows what he has got as its his lifes work over the last 25years....read it and read their last report.....its all there....why repeat these announcements....its been listed for over 25 years in New ....Zealand...the CEO had the vision...more than PDN...as SMM peged all the ground in MT ISA.....and that is what I call vision

Oooh what a pretty booklet I recieved from Paladin today!

I thought the whole offer for my SMM shares was over and done with.
Should I even look at this booklet?

Seems like a waste of money to me. Or is it designed to present the facts for the shareholders to make their own decisions on if to sell or not?

Go Nuke said:

Seems like a waste of money to me.

Click to expand...

Funny, I thought exactly the same thing. Is it biodegradeable? Must have cost a pretty penny for a company that doesn't make any money yet. Hhhmmmm.

Seems a few people are expecting another bid. Wouldn't be surprised. If they thought it was worth 1.1b before, and now it's trading at 800m ish, there's a bit of room to move...

I believe SMM should not too greedy. An advanced uranium explorer is enjoying super rich valuation, and still want more.

According to PDN's presentation (on Feb 26,07 price), SMM is valued at higher EV/lbs resources than PDN, and 3 times as much as SXR, 5 times as much as MTN.

At EV$22/lb valuation, what more SMM can ask for? Want to have DotCom style valuation, and ask PDN to pay the in ground value?

Not a producer, not financially strong, not technical sound, just a bunch of Kiwis made a fortune by luck. Give us Aussie a break. PDN might offer you a director, or vice MD, or so.

SMM's SP has been hyped by the PDN's takeover possibility before. Without it, it might only worth $2 or $3 dollars on standard EV/lb value.

Greedy Kills!

Let's look at a hypothetical:

If I were to own 10000 SMM shares, their current value would be $45,700.

If I were to accept PDN's offer, I would get 10000/2.04 = 4901 shares (actually 10000/2.04 = 4901.96, but they won't give me 0.96 of a share, I guess).

So, again at today's price, this is worth $45,089.20 Hmm, $610.8. Not much of a shortfall, but it is a shortfall!

I could buy 133.65 more SMM shares with that!