Wednesday, October 11, 2006

RoBTV Commodities Report on Uranium

RoBTV Commodities Report on Uranium

Jean-Francois Tardif, portfolio manager, Sprott Asset Management was on RoBTV last Thursday giving an introduction to uranium fundamentals and tips on investing in uranium stocks

On Uranium
-supply-demand imbalance
-price of uranium has not gone down 1 month in 3 years
-energy consumption growing, push for nuclear power in China and India
-French company AREVA (85% government owned) need uranium to sell reactors

On Investing in Uranium Stocks
it's very hard for small investor..look for established reserves..if you want to take more risk, look at companies with resources..depends on grade, how deep it is, which country it's in, management..you need to do a lot of research..find out what experts are saying..look at grade and say..how much is it worth per ton?

On Specific Uranium Stocks

you can buy URANIUM PARTICIPATION CORP. (TSE:U) which owns raw uranium

PALADIN RESOURCES (TSE:PDN): Paladin is next company that will produce uranium..decided to build mine..will produce ~11 million lbs in 5-6 years..not cheap but after CAMECO (NYSE:CCJ TSE:CCO), next one on the list to build high quality uranium stock portfolio

SXR URANIUM ONE (TSE:SXR): very aggressive company, bought two mills in US..I think they will continue to buy uranium assets and become a large company..assets in South Africa to take to production, produce ~4 million lbs..

DENISON MINES (TSE:DEN): just merged with TSE:IUC..must look at combined entity..both will be producing uranium..expectation 4-5 million lbs/year starting 2010..has definite upside

TOP PICK WESTERN PROSPECTOR (CVE:WNP): high risk in Mongolia..tax situation hopefully will be rectified..intrinsic value north of $10, lots of risk..do have assets..government asked for too much..think they will do the right thing down the road

URASIA ENERGY (CVE:UUU): exposure to Kazakhstan..lack of news and understanding make people worried..easier to buy other companies that people understand better

TOP PICK TOURNIGAN GOLD (CVE:TVC): have gold assets, Slovakia, hopefully spin out next year..John Embry of Sprott loves it..uranium asset 40 million lbs..doing pre-feasibility study..as a firm we like that company very much

ENERGY METALS CORPORATION (TSE:EMC): very smart management..got database and figured out where uranium was in US..ownership in lots of resources..not proven but potentially 200 million lbs uranium..now starting to work on 3 properties..will take a long time but this company down the road will produce uranium

TOP PICK UR-ENERGY (TSE:URE): will produce uranium expectation between 2008-2009..have 20 million proven lbs with 43-101..some people speculate that they could be bought out..SXR, Paladin, EMC maybe..
 

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