Fission Uranium: FCM Advanced Resource Stock Valuation

Flagship Property: Triple R = 100% Ownership

Location: Saskatchewan

Market Cap = US $255,440,979

Resource Base = 102,470,000 lbs. U308 (FCM post-PFS Resource Upgrade Estimate)

Share Structure = 532,168,707

Market Cap Valuation Per Resource Lb.

= US $2.49 Market Cap value per lb.

In other words, each lb. in the ground is valued at US $2.49 by Market Cap.

Share Price Valuation by Resources in the Ground

= .19 lbs.

In other words, each share represents .19 lbs. of U308 and each share represents US $5.00 worth of U308.

Resource Valuation as a Percentage of Market Cap

  • Market Cap = US $255,440,979
  • Value of Resources = US $2,664,220,000

The Market Cap is valued at 10% of the resources in the ground. There is room for significant Market Cap growth.

After-tax IRR (@ US $65/lb. U308) = 34.2%

NPV/CapEx = 93%

  • NPV = US $774,928,782
  • CapEx = US $835,707,510

Rough Market Cap Valuation

  • Value of Resources = US $2,664,220,000
  • Value of Resources at 15% = US $399,633,000

The current valuation (US $255,440,979) is lower than the Market Cap valuation based upon the present Value of Resources at 15%.

Near Future Cash Flow Multiple @ $26/lb U308 = 1.6

  • Near Future Cash Flow = US $155,740,000

In other words, with a Near Future Cash Flow Multiple of 1.6, Fission Uranium should be worth US $408,705,566 at $26/lb. U308.

Future Cash Flow = US $662,740,000

Fission Uranium’s Future Cash Flow is ~2.6 times its present Market Cap.

Cost Structure = 22%

Debt = 0 Debt

Future Market Cap @ US $65/lb. U308 = US $999,082,500 … Unrated

Future Market Cap Growth = 291%

Conclusion

Recently, 9 PFS resource upgrade holes targeting the R780E zone intersected wide, high-grade mineralization. Consequently, Fission Uranium’s upcoming PFS will likely reflect an updated resource base of no fewer than 102 Mlbs. U308 (M&I).  As the fundamental picture has changed for Fission, so has our price target: US $1.80

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