Forsys Metals

Forsys Metals (TSX:FSY), (FSE:F2T) & (NAS:FOSYF)
Share price: CAD 7.30 (mar 16, 2007)
Number of shares: 56 million
Market cap: CAD 408,8 million
Resources: 21.6 mio. lb (NI 43-101 compliant)
Price per pund U3O8: USD 16.12
Estimated production start: 2009
Estimated production output in 2010: 2.5 mio. lb
Estimated revenue 2010 (U3O8 = $91) : USD 227.5 mio.
Estimated production costs per lb: $ 25
Estimated profit 2010: CAD 193.7 mio (USD 165 mio.)
Price target 2010 at p/e 10: CAD 27.7 (70 mio shares)
12 month price target: CAD 14 (upside 91.8 %)



Paradgim Capitals analysis (April 2006)
"Investment Thesis
Forsys Metals is an emerging uranium producer with assets in Namibia. Its main asset is its 90% interest in the Valencia deposit, which currently boasts a resource of 21.6m pounds of uranium in the inferred category. We are very optimistic about the short and long-term fundamentals for the world uranium market. The main reasons we like Forsys Metals are the deposit geology and the location of the company’s Valencia deposit. Valencia is close to infrastructure and within 150 kilometres of the deep water port of Walvis Bay. Perhaps most importantly, Namibia is a jurisdiction in which uranium mining is looked upon favourably and the speed with which a deposit can be permitted is second to none. Namibia has a long mining history and what’s more, a long uranium mining history from Rio Tinto’s 67% owned Rössing mine. The Rössing mine currently produces approximately 7% of the world’s uranium per year from its massive open pit operation. Beginning in Q3, Paladin Resources should commence mining uranium from its Langer-Heinrich deposit. Forsys Metals Valencia deposit is 30 kilometres from the Rössing mine and 40 kilometres from the Langer-Heinrich mine. In less than 2 years, Paladin was able to complete a bankable feasibility study for its mine as well
as nearly double the tonnage and grade of uranium by completing infill drilling. We feel that the geology of the Valencia deposit is favourable and that there is a strong possibility that the contained uranium could increase significantly by additional drilling. At present, the company envisions mining the deposit by an open pit, producing approximately 2m pounds of uranium per annum for a minimum of 10 years. The company has three drills operating at the site as part of a pre feasibility study that could be completed by year end. Nearly all of the company’s peers are in jurisdictions where obtaining a uranium mining permit requires at least 5 to 10 years and many are located in countries where uranium mining is not permitted under any circumstances. Furthermore, Forsys is the most inexpensive uranium developer based on its EV / pounds of NI-43-101 compliant U3O8 resources. We are initiating coverage with a Speculative Buy rating and a target price of C$5.15."

For more information in Danish about Forsys Metals.

Resource Investors article on Forsys Metals.

Forsys Metals official presentation.

Art Bechstein, I don’t know who he is, but I follow his posts on StockHouse and Wallstreet-online: A post about a fund manager who won't let go of his FSY position below 13C$ and a post about his valuation analysis of Forsys Metals and this list of Namibian uranium licenses. A post about his comparison of the Valencia deposit vs. UraMins Trekkopje.