Monday, September 04, 2006

Sep 4 Uranium Stocks Update: Urasia Energy (CVE:UUU )

Although I was less than impressed with their foreign exchange losses hampering the balance sheet, Urasia Energy has gained in recent days due to its trading in the London Stock Exchange's Alternative Investment market (AIM). Canaccord Adams has maintained its "buy" rating at $4, citing increased investor exposure of the uranium company as impetus.

Urasia's CEO Philip Shrivington spoke at RobTV's Power Breakfast on August 29, 2006, with his key message being:

(1) Akdala continues at full production capacity: 70% of 2.6 million lbs U3O8/lb
(2) further production in Kazakhstan to commence end of 2007, JV with Kazatomprom
(3) uranium production worldwide remains tight, prices will continue to increase due to lag
(4) Kurdistan and Kazakhstan exploration continues
(5) mentioned Urasia's board as being aggressive, citing Goldcorp's lineage
(6) cash @ $100 million
(7) AIM listing to accomodate UK interest and provide another market to raise funds if needed
(8) uranium prices have gone up for two years in a row and will likely not be affected by the coming slowdown in the economy
(9) Urasia is leveraged to uranium price, growth in resource base, and production, implying stock momentum can be sustained.

None of what Urasia's CEO said was too new or surprising. I would have liked to hear a pointed question to him about what Urasia plans to do about its foreign exchange losses, but it seems everything was scripted away from looking at the company's balance sheet. Aside from that, it looks like Urasia remains on schedule and its uranium production model in Kazakhstan is working out.


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