simmers looks like a really good buy at this price. (1)new management about the best in the business with guys like bernard swanepoel,Brown,Havenstein,Surgey,Murray.These guys would not be involved if there wasnt money to be made. (2) think they will merge the two companies and are happy to buy fum at such low prices. Fum still +/- worth C$5 per share.(3) Anglogolds involvement.Tau Lekoa deal on track and Weltevreden prospect.Weltevreden is shallow with quite good grades and is in buffels/tau area. anglo is also giving them another prospecting ground.Possible deal with anglo on the cards to treat their dumps.(These are my feelings and i do own shares in sim).
Yeah, I agree but it is going to take time. The funding requirements will be huge and on top of that they live with arguably the worst performing mining asset internationally in Fum. Revenue is too dependent from Buffels production where 5 shaft rehab should have been completed in 2008. Up and running now but only at about 60% output to target for 2010. Also this is an old and deep mine and costs/oz are higher than expected hence the shutting off of non profitable areas. TGME is not happening, therefore future growth rests on Tau and FUM. Given Fum's track record and funding requirements the share price I believe is discounting future dilution. 12 months time might be a different story therefore you should perhaps view it as a long term hold.
Macquarie Equities analyst Duncan McKeen raised his price target on First Uranium to C$3.25 from C$3.10. I agree a loooong term view. Any idea when the Tau Lekoa acquisition is going to be finalised? DME approval seems to be very slow?