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| | Corporate Profile: Strathmore Minerals Corp
Publisher: Kaiser Research Online
Author: Copyright 2013 John A Kaiser
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Strathmore Minerals Corp (STM-T)
| Strathmore is an emerging uranium producer with a portfolio of properties in the United States, largely concentrated in New Mexico and Wyoming. Strathmore's current focus is its permitting-stage Roca Honda deposit in New Mexico that is joint ventured (60:40) with Sumitomo Corporation of Japan. Roca Honda hosts NI 43-101 compliant measured and indicated mineral resources of 17,512,000 pounds of U3O8 contained within 3,782,000 tons at an average grade of 0.23 per cent. An additional 15,832,000 pounds at an average grade of 0.17 per cent U3O8 are estimated as an inferred mineral resource. Strathmore is currently advancing the permit for Roca Honda, and intends to submit the application for a 3,500 ton per day operation during the fall of 2009. Elsewhere in its portfolio Strathmore holds current and historic resources of nearly 100 million pounds of U308 in its various projects, several of which are also approaching the permitting stage. In February 2012 the company announced an $8 million financing with Korea Electric Power Corp., (Kepco), representing a 13.9% ownership interest in Strathmore, and giving Kepco the option to earn 40% in the Gas Hills project for $32 million in development spending over three years, as well as to retain a partial off-take from eventual production at the project. In May 2013 the company announced it had agreed to be acquired by Energy Fuels on the basis of 1.47 common shares of Energy Fuels for each common share of Strathmore. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
| Roca Honda |  | 60% WI | United States | 7-Permitting & Feasibility |
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| Roca Honda 43-101 Economic Study (USD except where noted otherwise) |
| PEA | Oct 12, 2012 |
| Roscoe Postle Associates | Roca Honda |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | UG |
| Cost Currency: | USD |
| Processing Type: |
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| Capital Cost: | $344,000,000 |
| Operating Rate: | 1,030 tpd |
| Sustaining Cost: | $100,500,000 |
| Operating Days: | 365 |
| Operating Cost: | $172.55/t |
| Strip Rate: |
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| BC Cash Cost per Unit: USD | $24.95/lb U |
| Mine Life: | 9 years |
| BC Cash Cost Net By-Products: USD | $24.95/lb U |
| LOM Tonnage: | 3,114,418 t |
| BC All-In Cost Net By-Prod: USD | $43.95/lb U |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | $43.95/lb U |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | U |
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| Grade: | 0.37% |
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| Recovery: | 94.0% |
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| Annual Output: | 2,600,000 lb |
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| LOM Output: | 23,400,000 lb |
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| Base Case Price: | $75.00/lb |
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| Spot Price: | $21.30/lb |
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| Base Case NSR: | $518.69/t |
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| Spot NSR: | $147.31/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $220,075,000 |
| Discount Rate: | 8% |
| After-Tax NPV: |
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| Total Base Case NSR USD: | $518.69/t |
| Pre-Tax IRR: | 19% |
| Total Spot NSR USD: | $147.31/t |
| After-Tax IRR: |
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| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $130,129,828 | $0.53 | Pre-Tax Payback: | 5.0 y |
| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | ($9,490,173) | ($0.09) | After-Tax Payback: |
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| Enterprise Value CAD : | $36,934,196 | $.27/sh | Share Price: | $0.27 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $726,668,448 | $477,684,698 | $310,101,524 | $194,471,918 |
| Base Case Pre-Tax Net NPV/Sh USD: | $3.23 | $2.13 | $1.38 | $0.87 |
| Premium BC PT NPV over EV: | $3.02 | $1.91 | $1.17 | $0.65 |
| Spot Pre-Tax NPV USD: | ($529,911,553) | ($467,452,504) | ($420,875,662) | ($384,839,862) |
| Spot Pre-Tax Net NPV/Sh: | ($2.36) | ($2.08) | ($1.87) | ($1.71) |
| Premium Spot PT NPV over EV USD: | ($2.57) | ($2.29) | ($2.09) | ($1.93) |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
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| Copper King |  | 100% WI | United States | 5-PEA |
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| Copper King 43-101 Economic Study (USD except where noted otherwise) |
| PEA | Jun 20, 2012 |
| Mine Development Associates | Copper King |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | OP |
| Cost Currency: | USD |
| Processing Type: | Flotation |
| Capital Cost: | $104,060,000 |
| Operating Rate: | 9,072 tpd |
| Sustaining Cost: | $0 |
| Operating Days: | 365 |
| Operating Cost: | $8.52/t |
| Strip Rate: | 1.2 |
| BC Cash Cost per Unit: USD | $527/oz Au |
| Mine Life: | 18 years |
| BC Cash Cost Net By-Products: USD | ($218.41)/oz Au |
| LOM Tonnage: | 57,401,991 t |
| BC All-In Cost Net By-Prod: USD | ($68.85)/oz Au |
| Est Startup: |
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| Spot All-In Cost Net By-Prod: USD | ($93.71)/oz Au |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Au | Cu |
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| Grade: | 0.43 g/t | 0.19% |
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| Recovery: | 77.0% | 68.0% |
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| Annual Output: | 53,500 oz | 13,298,978 lb |
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| LOM Output: | 695,800 oz | 188,600,000 lb |
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| Base Case Price: | $1,100/oz | $3.00/lb |
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| Spot Price: | $1,315/oz | $3.10/lb |
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| Base Case NSR: | $17.77/t | $12.05/t |
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| Spot NSR: | $21.25/t | $12.45/t |
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| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $159,500,000 |
| Discount Rate: | 5% |
| After-Tax NPV: |
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| Total Base Case NSR USD: | $29.82/t |
| Pre-Tax IRR: | 31% |
| Total Spot NSR USD: | $33.70/t |
| After-Tax IRR: |
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| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $70,534,828 | $0.52 | Pre-Tax Payback: | 2.4 y |
| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $83,369,901 | $0.62 | After-Tax Payback: |
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| Enterprise Value CAD : | $36,934,196 | $.27/sh | Share Price: | $0.27 |
| Note: 5% NSR |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $1,165,566,911 | $686,155,244 | $431,295,632 | $285,369,584 |
| Base Case Pre-Tax Net NPV/Sh USD: | $8.65 | $5.09 | $3.20 | $2.12 |
| Premium BC PT NPV over EV: | $8.43 | $4.88 | $2.99 | $1.90 |
| Spot Pre-Tax NPV USD: | $1,396,598,222 | $829,047,338 | $526,991,742 | $353,763,400 |
| Spot Pre-Tax Net NPV/Sh: | $10.36 | $6.15 | $3.91 | $2.62 |
| Premium Spot PT NPV over EV USD: | $10.15 | $5.94 | $3.70 | $2.41 |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
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