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« Uranium Update 13 March 2008 | Main | China: High Speed Construction of Nuclear Power Plants! »

Aurora Energy Resources Incorporated Takes A Bath!

The news that The Nunatsiavut Government is considering a proposed three-year moratorium on uranium mining and milling on Labrador Inuit Lands in coastal Labrador hit the stock price of both Aurora Energy Resources Incorporated and Fronteer Development Group Incorporated hard.

Aurora chart 13 March 08

According to CNN the above mentioned motion has passed a first reading and must now pass a second reading before it can included in the law.
Aurora President and CEO Dr. Mark O'Dea had this to say:

"Aurora recognizes that uranium mining can only proceed on Labrador Inuit Lands with the agreement and trust of the Labrador Inuit, Aurora is committed to making sure that the Nunatsiavut Government and the coastal communities are comfortable with any proposed mining project."

Aurora is optimistic that the process will move ahead. Well as investors in this stock we certainly hope that these issues are resolved to benefit of both parties. It also raises the question of whether to stay or whether to go? If we go now we register a financial loss and if we stay the loss could be much worse or looking the bright side, the stock would jump on news of a reconciliation. The successful outcome in part depends on the ability of the management team to convince the objectors to the scheme that their concerns have been considered and satisfied. This focusses our attention on the company President himself, Dr. Mark O'Dea and just how much confidence we have in him. The answer to that question is that we are very confident that he can resolve this issue and push ahead. So what do we do next? Well, first of all we will hold onto our stock as the bad news is out and the damage is done. Secondly we will monitor the situation with the view to buying more of this stock at these low levels in anticipation of a bounce back.

As you can see looking at Aurora's chart it is not a pretty sight, from a high of $16.00, to yesterdays close at $6.14.
The same situation has also affected FRG which we will also watch carefully.

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Aurora Energy Resources Incorporated trades on the TSX under the symbol of AXU. Fronteer Development Group Incorporated trades on the TSX under the symbol of FRG and on the AMEX under the symbol of FRG.

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Reader Comments (1)

Note: Aurora added $0.44 today for a gain of 7.17%, to close at $6.58.

March 13, 2008 | Unregistered CommenterUranium Stocks

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