HATHOR EXPLORATION (V-HAT) $2.25 +0.10
We’ve been having a lot of fun in the markets again
after one of history’s biggest market sell offs. All of a
sudden, some of our favorite mining and oil and gas
stocks (at least those that survived) have become doubles
and triples.
One story though that has been disappointing us has
been Hathor Exploration, a story that we are off to Saskatoon
to take a look at with a bunch of other analysts,
writers and brokers.
Today Eric Zaunscherb, Canaccord’s analyst following
this story, comes up with a rather intriguing report
headlined “World-Class Intersection Strengthens Confidence.”
Zaunscherb writes, “The results included assays
from much-anticipated Hole #MWNE-09-116,
flagged previously by its strong scintillometer response
and high density. The hole delivered with a world-class
intersection, one of the best in the history of the Athabasca
Basin, with 18.12% U3O8 over 13.0 metres including
70.34% U3O8 over 2.5 metres. Twenty of the 23 drill
holes reported intersected mineralization greater than
0.05% U3O8. Despite the positive results, the market remained
unmoved.”
Zaunscherb continues, “The positive drill results (a)
increase our conceptual (not NI 43-101 compliant) resource
estimate to 20.5 million pounds U3O8 at 4.5%, (b)
increase our confidence in our geological understanding
and model of the Roughrider zone, and (c) maintain our
confidence that the zone remains open to expansion.
The market is now blasé about the present and focused
on the future: what might the next round of drilling
bring?”
As far as valuation, Zaunscherb comes up with, “We
generate a total project NAV of C$539 million, or C$5.91
per share” and he applies a .7 times target to come up
with a $4.50 target on the stock.
Then he gets into something interesting. “World-
Class Intersection Fails to Move the Market...Why?”

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