Niger: Madaouela = 100% Ownership
Zambia: Mutanga = 100% Ownership
Crucial Data — General
Fully-Diluted Shares = 506,190,000
Fully-Diluted Market Cap @ US 0.176/share = 90,253,677
Measured & Indicated Resources (Madaouela + Mutanga) = 125,960,000 Mlbs. U308
Cash = US $6M
Debt = US $9,100,000
Debt Coverage @ $70/lb. = $2900%
Average Cost Structure (Madaouela + Mutanga) = 51%
Crucial Data — Madaouela
NPV = US $340M
IRR = 21.9%
CapEx = US $359 M
NPV/CapEx = 95%
Crucial Data — Mutanga
NPV = US $269M
IRR = 25%
CapEx = US $121 M
NPV/CapEx = 222%
GoviEx Uranium — Advanced Valuations
Market Cap Value per Lb. = US $0.72
In other words, each lb. U308 in the ground is valued at US $0.72 by Market Cap.
Share Price Valuation by Resources in the Ground = 0.25 lbs. U308
In other words, each share represents 0.25 lbs. of U308. At $70/lb., each share is worth $17.42 U308 in the ground.
This is why the Market Cap is relatively low. If GoviEx had fewer shares or more resources, it would be valued higher by the Invisible Hand.
Market Cap Valuation as a Percentage of Resources = 3%
The Market Cap value is extremely low relative to the present value of resources (US $3,023,040,000 @ 24/lb. U308). There is room for significant Market Cap appreciation.
Back-of-the-Envelope Market Cap Valuation = US $453,456,000 @ $24/lb.
With a fully-diluted Market Cap of 90,253,677, GoviEx is significantly undervalued.
Near-Future Cash Flow Multiple @ 24/lb. = -2.8x
Near-future cash flow, as expected is US $-31,740,000
Future Cash Flow @ $70/lb = US $185,150,000
Future Market Cap @ $70/lb. = US $881,720,000
Future Market Cap Growth Percentage = 877%
GoviEx Uranium is significantly undervalued. We believe its Market Cap could appreciate by as much as 900% with higher spot U308 prices. Our target price is US $1.74.