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« Uranium Price Declines to $133/lb – But instability increases in Niger | Main | Uranium-stocks: Portfolio Update 06 July 2007 »
Saturday
Jul072007

Uranerz Energy Corporation: Close to a Buy!

Uranerz Energy Corporation has suffered at the hands of the profit takers recently falling from $7.50 to close at $4.97 on Friday.

This is one uranium miner that we like but have failed to buy for various reasons. We last wrote about Uranerz on the 5th February 2007 when we described it as “Another Hot Uranium Stock” However if you read the article you will see that we were trying to be patient and hopefully identify a suitable entry point for our cash. Well, just like a bar of slippery soap it took off before we could acquire it.

FEBRUARY Chart:

URZ Chart Feb 07

The stock had jumped from around $3.00 to almost $4.00 so we thought that a little pull back was a real possibility. This didn’t happen and the stock went on to hit $7.50 and we decided not to chase it.

Fast-forward to time now and we can see that this stock has dropped 1/3 since reaching $7.50 along with a number of other uranium stocks. The technical indicators are almost on the floor, which suggests that a buying opportunity could be getting closer.

JUL Chart:

URZ July Chart


Ideally we would like to buy when the stock price is closer to, or below its 200 DMA, a visit that does not happen to often with this stock. The stock is in a downtrend but it did trade above $5.00 in February so the current price of $4.97 (considering how much the underlying asset of uranium has risen) is a tantalising proposition.

Uranerz has around 34 million shares outstanding which puts the market capitalisation at $194 million. The news flow is good and frequent which is something we like as it reflects well on a pro-active management team. Doubling their Land Holdings in the Powder River Basin, Wyoming, for instance.

Last week was a better week for most uranium stocks but Uranerz lost almost 7%, maybe it has been overlooked and its turn is about to come. Nobody can forecast the future and we guess that is part of the challenge in this business, trying to get the timing right.

In conclusion we think that this stock could go a little further down and once again we will wait and watch for a suitable entry point.

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Reader Comments (14)

I'm surprised that after missing the boat on URZ last time that you would be willing to miss it again for the sake of a few cents. (200 DMA around 4.50)

It sure looks oversold to me and coupled with the big short position 1.3 mill shares, this could bounce hard on good news.

The fact that institutional interest went up from 1 to 6% at a time when (March) when URZ was trading much higher, leads me to believe that there is a lot more yet to come from this company.

With the TSX listing will come a 43-101 finally! and then we will get a better idea of what they have in the ground. A U company doesn't double their land position if they don't have the goods.

Results to date have been very good and grades also very good. News from JV partnerships and more results should be coming this or next month.

I'm hearing that meetings with Institutions have gone very well and that there is plenty of interest. The company has already been approached regarding selling out as well and were told "The company is not for sale"

Numbers being thrown around have been 30 million plus lbs of U. I think if you do the math factoring $30/lb on the high side to mine, you will get a pretty interesting valuation for this company.

This stock looks blue chip to me. I'm surprised you haven't discussed it more on your site.

July 8, 2007 | Unregistered CommenterMike

Mike, There may well be plenty of interest but that interest needs to get around to writing a cheque or two before it means anything to us.

July 9, 2007 | Unregistered CommenterUranium Stocks

There was a slightly negative article in a Forbes e-mail newsletter. Basically saying they have no compliant resources, revenues or earnings. And they won't be mining until at least 2010. Nothing new there. I bought more around 5 bucks!

July 9, 2007 | Unregistered CommenterJon

Well we are getting a whole lot closer to the 200 MDA. I must admit I am surprised it has slipped this far especially with other U stocks running today.

Seems there is very little support for this stock. Maybe I'm missing something?

July 9, 2007 | Unregistered CommenterMike

The Forbes article was rubbish. Without merit and really smelled of conspiracy.

Shorts have piled into this stock and articles like that one really make you wonder if these writers are in bed with the hedge funds that are manipulating the markets these days.

URZ to date has been easy prey for these guys, hopefully that changes soon. They need news which I'm told is coming and they desperately need to promote the company.

Well the close was right near that 200 DMA so it a "buy" now rather than just "close to a buy"?

I don't see that anything has changed with the company. In fact the news to date makes it a better story than it was when it was trading 7.50

Has to be a buy here.

July 9, 2007 | Unregistered CommenterMike

Its your money Mike and as you feel so strongly about it then keep on buying, we will wait and watch as we did yesterday when it dropped another 4.83%.

July 10, 2007 | Unregistered CommenterUranium Stocks

Looks like URZ is already turning down offers from the big boys.

http://www.mergermarket.com/public/default.asp?pagename=clients

$10 a share fair market value eh hmmmm.

Uranerz Energy, the listed uranium exploration and development entity, has been approached regarding a sale, chairman of the board, Dennis Higgs said. The company, however, has repeatedly turned down interested parties, he added.
"We are a target. I can tell you with certainty a large number of companies have approached us," Higgs said, while declining to name specific firms. "To be acquired by someone who has undervalued us doesn't make sense. We don't want to sell," he added.
The uranium sector is starting to see its share of M&A activity. Last Monday, Energy Metals Corp (EMC) announced it is merging with acquisitive uranium partner, SXR Uranium One, in an all-stock transaction. That deal represents a 28% premium to the 20-day volume weighted average trading prices of Uranium One's and EMC's shares on the TSX for the period ending 17 May.
Further, in an interview with this news wire service, chairman of Ur-Energy's board, Jeffrey Klenda said that the TSX-listed uranium explorer is currently in talks regarding a possible sale, and has also been approached repeatedly.
Higgs said there are two main obstacles standing in the way of a potential hostile bid for Uranerz. First, directors and officers own 19% of the company; second, the company's management team would not be interested in leaving the company in a possible takeover, explained Higgs.
When pressed regarding a possible takeover price, Higgs said the company is held by over 9,000 shareholders as such, a sale would be contingent on their recommendations. "With our stock at USD 6.00, our shareholders might accept USD 10.00, but I'm not going to say that management would accept that," he added.
An industry banker said a USD 10.00 per share offer would represent a fair value if the company could receive that type of premium. The banker described Uranerz as "a good little company" in the right area, with historical resources that have to be converted to 43-101s.
Similarly to Ur-Energy, Uranerz' most attractive assets are located in Wyoming. The company has 13 projects in the Powder River Basin (PRB), which based on historical data has 18 million pounds of uranium, Higgs said. Uranerz does not currently have a producing asset, but permitting is expected to begin this year, he added.
In addition to Wyoming, Uranerz also has assets in Saskatchewan and Mongolia. Higgs also said Uranerz has USD 15.5m in cash. However, the banker noted that Mongolian assets are still considered riskier due to political uncertainty in that country and are deemed less attractive than projects in the US.
With respect to timing, the banker commented that Uranerz is trying to work towards getting listed with the Canadian exchanges, of which a number of technical disclosures will have to be met. Once that occurs, it will give Uranerz more shareholder base exposure, helping its liquidity, he added.
Other active uranium players in the PRB include the largest uranium player in the world, Saskatchewan-based Cameco, and the second largest, France's Areva. Further, other uranium players, like UK-based Paladin Resources and Vancouver-based Denison Mines have been tagged as possible acquirers.
Headquartered in Vancouver, British Columbia, AMEX-listed Uranerz has a market cap of USD 228.6m.
by Cheryl Thompson and Nadia Damouni
Source : mergermarket Size : 100m - 500m (USD) Value : 228 m USD (Current market cap) Stake Value : more than 30% inclusive Grade : Confirmed Alert : Mining Intelligence ID : 483185

July 10, 2007 | Unregistered CommenterMike

I am a holder. I've had this stock since early this year and have doubled my holdings last week. I think $4.50 is a pretty good time to buy as the 200 DMA and a previous bottom come together there. Once URZ bottoms out, it can get hot. Really hot.

July 11, 2007 | Unregistered CommenterJoey

URZ's JV partner begins drilling in Monglia

http://biz.yahoo.com/ccn/070712/200707120402068001.html?.v=1

July 13, 2007 | Unregistered CommenterMike

We do like a positive attitude and we think it could be close to a U-turn, but one swallow does not make a summer. This stock had a good day, yesterday, but it is still in a downtrend and we would like to see a bigger move upwards before we invest in it.

July 13, 2007 | Unregistered CommenterUranium Stocks

Uranerz Acquires Texas Uranium Project

Casper, Wyoming, July 16, 2007 — Uranerz Energy Corporation(AMEX:URZ) is pleased to announce the completion of an initial leasing program of approximately 8000 acres in the State of Texas. Based on geologic reports and more than 90 drill holes, these 8000 acres are believed to cover a northeast-southwest uranium mineralization trend.
Plans are being made to begin drilling this property next winter after the Wyoming drilling season is completed. Initial drilling programs will be designed to confirm the presence of the uranium mineralization and to obtain core samples for extraction testing procedures to determine the potential for in-situ recovery mining possibilities.

Uranerz Energy has made the decision to widen its operations into the State of Texas given the possibility of in-situ recovery mining as evidenced by the existence of at least two successful uranium mines currently operating there now and the permitting activities of additional production facilities at this time.

“We have reason to believe that this property may show significant uranium mineralization,” stated Kurtis Brown, Senior Vice President of Exploration, “With the State of Texas proving to be very uranium friendly, both past and present, in time we may be able to initiate an in-situ recovery operation.”

This land acquisition program is part of Uranerz Energy’s ongoing plans to acquire property with high potential for recoverable uranium in the not too distant time frame. Land activities continue both in Wyoming, especially the Powder River Basin area, as well as Texas and other areas of interest.

Uranerz Energy Corporation has expertise in in-situ recovery uranium mining and holds a number of properties in Wyoming with uranium-mineralized sandstone. Several of the Powder River Basin uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these properties, the Hank and Nichols Ranch projects.

To obtain more information, contact investor relations at Uranerz, telephone 1-800-689-1659, or visit our web site at www.uranerz.com

ON BEHALF OF THE BOARD

“Glenn Catchpole”

Glenn Catchpole
President and CEO

July 16, 2007 | Unregistered CommenterMike

I'm sure it will recover one day, but URZ has been taking a beating. It did go up, briefly, Tuesday, but fell back by the end of the day. Monday pushed it below $4 intraday. Hard to figure out where that bottom is, isn't it? There is such volatility in this market that no one can make definitive statements; learning to ride a bull can really rack the nerves.

July 18, 2007 | Unregistered Commenterstoneygulch

URZ looks to found some support today.

Strong day considering....actually most of my U stocks finished green today.

I think we are starting to see some accumulation in URZ at these levels. News today is a step in the right direction. These guys are definitely executing better than most.

Interesting to see the volume increase on the Euro side.

July 18, 2007 | Unregistered CommenterMike

News - Uranerz Welcomes New Land Department Manager
Wednesday July 18, 1:09 pm ET

CASPER, WYOMING--(MARKET WIRE)--Jul 18, 2007 -- Uranerz Energy Corporation (AMEX:URZ - News)(Frankfurt:U9E.F - News) is pleased to announce that it has retained the services of Mr. Douglas C. Hirschman to the Casper, Wyoming operations office as the Land Department Manager for the company's North American uranium acquisition and exploration activities.
ADVERTISEMENT


Mr. Hirschman is a graduate of the University of Wyoming and has over 30 years of experience in the mineral exploration industry serving in various capacities and most recently as Manager of Lands, International with Newmont Mining Corporation. Mr. Hirschman has supervised mineral property acquisitions, prepared and negotiated agreements including joint ventures, performed land status investigations on federal, state and private mineral interests in the Western USA, and maintained land records insuring timely satisfaction of land payments and agreement obligations.

"With the company growing and expanding at our current rate, we are extremely pleased to have someone of Mr. Hirschman's caliber and ability join us," stated George Hartman, Chief Operating Officer and Senior Vice President, "His experience both locally and internationally will be extremely beneficial as we progress in our development and expansion."

Mr. Hirschman is an active member of the American Association of Professional Landmen.

Mr. Bill Houston who joined us in November of 2006 has reduced his current role with the company, but will continue to assist Uranerz on special projects.

Uranerz Energy Corporation has expertise in in-situ recovery uranium mining and holds a number of properties in Wyoming with uranium-mineralized sandstone. Several of the Powder River Basin uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these properties, the Hank and Nichols Ranch projects.

To obtain more information, contact investor relations at Uranerz, telephone 1-800-689-1659, or visit our web site at www.uranerz.com

ON BEHALF OF THE BOARD

Glenn Catchpole, President and CEO

This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:

(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;

(ii) the inability of the Company to achieve the financing required to pursue the acquisition or exploration of any new mineral properties;

(iii) the inability of the Company to raise the financing necessary to conduct exploration or development of its properties;

(iv) the lack of presence of commercial mineralization on its properties; and

(v) the inability of the Company to establish commercial deposits or reserves of uranium on its properties.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

Contact:
Contacts:
Uranerz Energy Corporation
Lloyd Jacobs
Investor Relations
1-800-689-1659
(604) 689-1722 (FAX)
Website: http://www.uranerz.com

--------------------------------------------------------------------------------
Source: Uranerz Energy Corporation

July 18, 2007 | Unregistered CommenterMike

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