Hank and Steve Wright,
You certainly have a right to express your opinion and so does GR. In fact, IMO it would be great if GR invested in Denison, especially if he is willing to take a 10 million share position.
If you do not know Denison very well (which I think you dont, from reading your posts), I would suggest you read my posts # 3 and 8. Post#3 gives an overview of Denison, and post#8 gives the share structure.
I think, 1996 eps will be about 10 cents (317M shares o/s), with cash flow around $40 million. If oil prices hold up to current levels (Denison's share of production is 8500 barrels/day), then 1997 could be a banner year, with 1997 cash flow around 50 to 60 million dollars. I have also heard that McLean Lake Uranium project is on schedule for a July/97 start up (Denison 22.5% interest).
Cameco's recent yearend report indicated that uranium prices in Dec/96 were $14/lb, with a 1996 high of aqbove $16/lb (compared to about $8/lb about a year ago).
I do not know of many companies that have an annual cash flow of about $50 million. With such a huge cash flow, Denison can not only take care of its liabilities (decommissioning of the Elliot lake, etc.), but will have enough cash to soon start exploration.
In my opinion, like GR, Denison can easily rise to more than a dollar/share. The only difference is that, I think it may take about a year to achieve that level (Ofcourse, assuming McLean Lake start up will be smooth).
Regards, Lalit |
