urg::: Uranium miner's listing glows

Sat Sep 10 15:14:07 EST 2005

News Limited

Uranium miner's listing glows
By Robin Bromby
10-09-2005
From: The Australian

INVESTORS inflated the uranium bubble still further yesterday by 
quadrupling the price of Energy Metals within minutes of its listing.
The shares, issued at 25c, hit $1 at the open and ended the day at a 
handsome 86.5c.

The company, which has 53 per cent of a high-grade deposit in the 
Northern Territory, was targeted after its share was heavily 
oversubscribed and closed early.

Meanwhile, new floats continue to be launched to try to satisfy 
investor hunger, with Maximus Resources launching a $6 million 
initial public offering based on uranium, gold and base metal targets 
in South Australia and the Northern Territory.

But it was Energy Metals' day.

The company was spun out of Jindalee Resources and controls seven 
uranium projects.

The most advanced is the 53 per cent owned Bigrlyl in the Northern 
Territory where historic exploration estimated a 2630-tonne resource. 
But the area contains more than 13 potential drilling targets along a 
14km strike zone.

Before the listing, Resource Capital Research said the $6 million 
face worth of all shares on issue meant Energy Metals was undervalued 
compared with similar companies where market capitalisation was 
between $15 million and $30 million.

Far East Capital analyst Warwick Grigor said Energy Metals' appeal 
was that the Bigrlyl deposit was high grade.

"That's what makes it stand out from the others," he said. "This 
proves the market still wants uranium stocks."

But Mr Grigor said his charting showed many of the uranium hopefuls 
had seen their share prices ease in recent weeks, but not 
dramatically.

"It's not the collapse of a bubble," he said.

Those promoting Maximus Resources will be hoping so.