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SMM - Summit Resources

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siempre33 said:
mmmmining said:
"..MGA.TO's share price was up 20%+ late yesterday afternoon, (partly because of stock tip sheet).."

that was Sir James [TDL] who re-issued a buy on Mega.....he certainly knows something is up with MGA/SMM...
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marketwire.com Mega Uranium to spend $20 million on Australian projects.
 
kromey said:
marketwire.com Mega Uranium to spend $20 million on Australian projects.
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I noticed it too. It shows that Mega Uranium is lack of political knowledge locally. WA is dead money at this moment. QLD and back and forward, don't what the position is.

Well, Mega Uranium is $1.3b gorilla, with about 45mlb resources, and some of them are just historic data, valued at EV $25/lb. By taking SMM, it will consolidate its position in QLD, and still EV/lb positive. What a great idea! Let see what happened on Thursday.

If it is not Mega, it must be another Canadians. They love Aussies selling assets cheaply.
 
Would Mega bother about GGY?
 
Mega ...Most drilling planned for Queensland hmmmmm.............price coming off high in Can. too.



- A 10,000 metre drilling programme in the Georgetown Project, Queensland, to investigate targets highlighted by the recent airborne magnetics-radiometrics survey, in the vicinity of Mega's Maureen resource and elsewhere in the project area.

- Some 5,000 metres of drill testing on a north-south trending uraniferous shear zone in the Oasis Project, Queensland, in which drill intersections in 2006 included 10 metres @ 0.12% U3O8 and 7 metres @ 0.17% U3O8.

- 4,000 metres of drilling in the Kintyre Rocks Project, Western Australia, to test targets located some 6 kilometres west-southwest of Rio Tinto Ltd's 79 million pounds U3O8 Kintyre resource.

- 7,000 metres of drilling to test various targets in South Australia and Northern Territory.
 
James Dines also put a sell on smm a little while ago, which would make no sense if mga were to buy smm (as far as him knowing something is up between mga and smm). Mega has their own resources they are going to focus on in Australia
 
sleeper88 said:
announcement out...not mega..its a Strategic Alliance with Areva
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Areva buys in at 6.20, with options for more - good news for SMM holders like me, seems out of reach for PDN now (which I also hold!)
 
Well, I am totally wrong. But Areva is insane. Anyway, it is a good news to shareholders.
 
mmmmining said:
Well, I am totally wrong. But Areva is insane. Anyway, it is a good news to shareholders.
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This makes up for my miss on URA this morning after toying with options.
But agree - insane. So was the person who bought at 6.50.
 
nizar said:
500k+ sellers at $5.10 this is not going anywhere in a hurry.
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got rid of them at $6 nizar!

wow what a massive ann, i sold half my SMM holdings about a week ago, DOH!

oh well still hold half my original investment at $1.53 avg
 
I have the utmost respect for most of the contributors to this forum, but I doubt Areva would be "insane". I 'm sure more than a passing analysis was conducted before they committed nearly $300 million dollars to this play!

I think the difference here is the time perspective. They are obviously in this for a long-term benefit (as in several years/decades) whereas I wouldn't mind betting that the majority of punters in SMM at the moment are thinking in terms of months, with the amount of action happening all over the market at present.
 

Sir, Please don't tell me $113/lb uranium will last forever. Long-term uranium could be worth like $10/lb. It happened before, could happened in a decade time. It is a commodity, has its boom and bust cycle.

Remember a lot of companies pay handsomely for some high flyers in dot.com period, it ends up with writing off billions of dollars from their book.

It make PDN look dirty cheap.
 
I take your point absolutely Mmmmining. I'm just making the point that no company would just plonk $300mill down without having done far more research, analysis and informed hypothesising than any of us individuals could every envisage performing or having access to.

Mistakes certainly do get made when companies get their assessments of the future wrong, (eg. Acclaim selling Langer Heinrich to Paladin for $15,000!!!) but I certainly wouldn't assume they are "insane" to make this investment.

I think I'd trust their assessment of the potential of SMM rather than my own!

Having said all that though, I'm reviewing whether this is an appropriate exit point for myself. Again, boils down to time horizon. Quickie profit, out now (or soon), long-term high risk-highish reward investment, hang in there!
 
They have an option to buy another 9% at a$7,20 in 2 to 6 months!
Have you read a more bullish announcement?
 
it boils down to one key point, the fate of their 300m investment lies in the hands of the QLD govt, and politics is unpredictable!!
 
Just did my worst trade, bought 5000 on the way up for a quick day trade at 6.20, sold a minute later at 5.70. Its a deep burn.
 
Hi Sleeper 88.

And this too is the long-term perspective coming in. The ALP may....may....not change their policy this year...or the next year....or the one after that.

But one day.......when the populace is ready for the idea or when there is a change in government.

As said, a number of us here have probably taken a fair punt on the policy changing. I'm sure these people would have weighed up the probability.
 
Brujo said:
I think I'd trust their assessment of the potential of SMM rather than my own!
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Brujo, I am glad we are not insane, and agree on certain points.

To address your trust, I have to ask you a question, where is Areva 12 months ago when a lot of average Joe were investing their saving on this little beauty?

With that sort of money, Areva can buy the whole SMM, plus 10% in PDN.

Obviously, they made huge mistake before, they made mistakes up to today. How can you trust them not making another mistake?

I am a SMM shareholder, I have to figure this out before I take any action.
 
Hi Mmmmining. I could only assume it is the big company mentality. 12-18 months ago SMM may just have been too small and prospective to even be on their radar.

I detect from your posts (I have not been on forum for very long) that you are from a WA resources background, as am I. You would well know the old story of numerous BHP and former WMC projects getting turned into company-makers for smaller players. The old BHP "we won't look at it unless a resource of 250,000 oz" kind of mentality, which has resulted in the smaller players picking up significant projects very cheaply.

In reply to your very valid point, this may just simply be a reverse case of SMM previously having been too small and still too prospective to warrant a significant investment. Now, the potential returns for them are certainly much much smaller than if they had invested 18 months ago, but so too are the risks. Political risk is still there, but the price is much stronger than 12 months ago, and the project itself is much further developed.

I too am debating which way to play this one now though.
 
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