Small Cap Monitor:

Small Cap: Globe Uranium Surges 12% As Resources Exceed Expectations
April 1st. 2008 - Australasian Investment Review – (AIR)

Shares in Perth-based Globe Uranium (GBE) surged as much as 40% today after the uranium explorer announced the initial JORC resource for its wholly owned multi-resource Kanyika Project in Malawi.

The share price in the small capitalisation company finished 24% up at 31 cents on the back of the news, although this is still well below its 52-week high of $1.21.

The company said the Kanyika resource was discovered at a cost of $3 million over 2 years.

“The multi-commodity aspect of Kanyika is one of its most important features,” the company said of its niobium, uranium, tantalum and zirconium project in the east African state.

“Niobium demand has grown at 20% per annum over the last five years on the back of the China and India story. The other three commodities – uranium, tantalum and zircon – could be produced as a byproduct irrespective of their grade, as the potential mine economics will be based almost entirely on the niobium extraction,” managing director Mark Sumich said.

Globe said 85% of all niobium is used in the steel industry, and 10% of all steel products contain niobium as an additive.

“The high-grade, mostly near-surface component of the resource lends itself to early open cut mining at a very low strip ratio, thereby reducing a capital payback period,” he said.

“This can be critical to securing debt funding for mine development.”

The company said its cash position as of today’s date is $8.9 million.

The market capitalisation is approximately $16.8 million.

Just Group Targeted In A Takeover.

Shares in retail group Just Group (JST) rose as much as 13% today after it was named as a takeover target by Premier Investments, whose bid values the retailer at $898 million.

Under the terms of the offer, Premier is offering $2.20 in cash and 0.25 Premier Investment shares for each Just Group share, valuing each JST share at $4.11 - $4.46.

Just Group which owns the Jacqui E, Just Jeans, Dotti and Jay Jays brands has not yet responded to Premier’s offer. Premier Investments (PMV)’s offer is subject to a minimum acceptance condition of more than 50% of Just Group shares.

“This offer provides Just Group shareholders with an attractive premium, substantial cash value, as well as a continuing stake in the future growth of Just Group and the potential upside of Premier through a generous scrip component,” Premier chairman Solomon Lew said.

“At a time of significant economic uncertainty and market volatility, the combined elements of cash and Premier scrip in this offer are compelling for Just Group shareholders,” he said.

Just Group’s share price decline has been in line with the performance of the S&P/ASX 300 Retail index, which has fallen 32.7% between 1 October 2007 and 28 March 2008.

Premium Investments said in the takeover statement, that this substantial decline reflects investors’ concerns about the worsening broader economic environment and its likely negative impact on the retail sector.

Premier Investment last month increased its investment in Just Group to 22.8%, having built a stake over the past few years.

It specialises in investment in listed securities and has been listed on the Australian Securities Exchange since 1987.

Shares in JST surged 12.5% or 44 cents to $3.96, whilst PMV stayed unchanged at $7.90.




	
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