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« Opportunities in Gold and Silver Mining Stocks | Main | Aurora Energy Resources Incorporated: Up 8.14% Yesterday »
Friday
Jul132007

Laramide Resources: Up 8.8% Yesterday

Laramide fell to a low of $9.21 recently but the stock has recovered in the last five trading sessions as it has gained 13.75% with the most significant increase coming yesterday, when shares in Laramide put on 93 cents, rising 8.80% to $11.50.

From the chart below we can see that Laramide looks to have formed a rounded bottom formation. This technical formation usually suggests a change in trend from downwards to upwards.

Laramide Resources: Up 8.8% Yesterday

Having falling considerably for a while, Laramide now looks be making a turnaround, with the stock price curving upwards in recent trading. Perhaps investors are realising that Laramide is a bargain at these prices considering they hold one of the largest deposits of uranium in Australia, the Westmorland project which holds over 40 million pounds of uranium. Laramide currently has about 60 million pounds of uranium in NI 43-101 compliant resources which, with its current market cap of $630 million, means Laramide is trading at roughly $10.50 for every pound in the ground.

Uranium mining has yet to be allowed in Queensland, Australia, where Laramide's flagship Westmorland's project in located. However we are confident that it will be permitting in the future. Please see our latest commentary on the situation in Queensland for a more detailed analysis.

We continue to have Laramide Resources as a BUY in our uranium stocks portfolio where it has virtually doubled showing a gain of 98.96% since our buy signal.

Laramide Resources trades as LAM on the Toronto Stock Exchange.

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Reader Comments (2)

While it is true that LAM is up 98% from three years ago it is down 42% from the value it achieved before the devastating news that Queensland will not allow uranium mining. The no mining policy has not changed, in fact the Beatty government has become even more belicose in the affirmation.
The federal politicians and others are increasing the level of rhetoric and insults; this is just creating deeper animosity.The media in Australia has reported that the coal lobby has been financially supporting the green lobby to increase the level of active protest against uranium mining. Big labour has a problem as well wherein they must wait until after the next election in 2008 to lobby the government for potential employment in mining due to the delicate balance of labour support in Queensland which risks a minority government if policy changes upset the rank and file. The ALP in Queensland will not risk losing power over the uranium issue.

This leaves LAM's Westmoreland project in doubt. Looking at the charts of LAM and expecting a technical recovery is naive to the extreme. THERE IS NO POSSIBLE WAY THAT LARAMIDE IS MINING WESTMORELAND WITHOUT AN EXTRACTION PERMIT AND THIS PERMIT IS NOT FORTHCOMING !!!!!!! GET IT ?

If LAM does not have an operating permit until a potential change in Government in Queensland after 2009 and a mine that will take years to bring into production, against all the other supply that is and will come on stream. What will the value of LAM be when the biggest period of expenditures are met with lower prices of uranium. No Mine, no money, period. In my opinion the shorts are going to have a field day with the unwary who are buying LAM today. It's LAM(s) to the slaughter IMHO.

July 14, 2007 | Unregistered Commenterwayne

Whatever, Wayne. Hope you take your own advice and short LAM. And by the way, LAM is not down 42% because of any devastating news from the queensland govt.; it is down in the same proportion as the other companies with similar market caps, so how can you suggest otherwise? In fact, most uranium companies were down in the recent consolidation by 30 to 50%.

July 14, 2007 | Unregistered Commenterstoneygulch

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