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Wednesday
Oct312007

Cigar Lake: 2011 at the earliest!

Cameco logo 30oct07
Cameco issued an upbeat report today covering the third quarter earnings etc, however as pointed out by one of our readers the delays continue.

We draw your attention to this quote in the report:

“As previously announced, completing the second shaft as a priority item and the delay in some remediation activities would set back the planned production start-up date from 2010 to 2011. We have now made the decision to complete this shaft prior to completion of some of the underground mine development program and some of the remediation activities are taking longer than anticipated. As a result, the production start-up date is now expected to be 2011, at the earliest. We will be able to provide a firmer production start-up date after the mine has been dewatered and the condition of the underground development has been assessed”.

As this problem has yet to be assessed after dewatering it is rather difficult to compile a detailed plan of what is required. Once the plan has been compiled then in can be set to a timeframe, which is called the schedule. The schedule requires an in-depth study and application of the resources required such labour, mechanical plant, power, finance, permits, etc. Then and only then are you in a position to give a start up date. Achieving that start-up date is another story as we stated in our article entitled: Flooded Mines: The Critical Factor for Uranium.

As investors in uranium stocks we cannot take our eye off Cameco however it could be some time, if ever, before we feel the effect of their production.

As we write Cameco’s stock is trading down 2.64% at $46.91 so the market is not too pleased with this news release. However, this is good news for the rest of the sector as most of them are trading in positive territory and some are experiencing double digit gains.

Food for thought!

Have a good one.

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Monday
Oct292007

Mega Uranium: A monster move of 17.72% in one day!

Mega logo 29oct07

Uranium stocks went into top gear yesterday to obliterate the Monday morning blues and Mega Uranium put in a monster performance with an advance of 17.72% for a gain of $0.76.

Turnover was up from Fridays half a million to just over two million shares traded for the day. There were many super performances by uranium stocks along with Mega’s, which must have put at least a small smile on the faces of the uranium bugs worldwide. Mega Uranium closed at $5.05, which is double what it was in the middle of August when the sell off was at its worst.


Mega Chart 29oct07



As we can see from this chart Mega Uranium is fighting back in great style. Although we could argue that the technical indicators have moved from the buy range and headed towards the top of the sell area we think that any breather could short lived. The reason being is that the spot price turned up three weeks ago and it is the spot price that grabs the headlines. In turn the good publicity provides a little more in the way of confidence to investors who are looking for a re-entry point.

Anyway, breather or not Mega Uranium is still a good buy in our opinion so roll on more Mondays like this one.

Have a good one.

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Monday
Oct292007

Uranium: Spot Price Up another $4.00 to $84/lb

Monday Morning Feeling Cartoon 29oct 07
That Monday morning feeling should be lightened a little by the news that the spot price for uranium is up again by $4/lb for increase of 5%. According to TradeTech LLC "Renewed buying interest on the part of speculators and hedge funds is contributing to the upward price pressure,"

The price of uranium has now ticked up over the last three weeks which is an encouraging sign and should bode well for those invested in uranium stocks. As always though keep an eye on the long-term uranium price and don’t go too mad on the weekly oscillations of the spot price. To repeat this is a very thin market, which can be pushed up or down by the immediate needs of an end user or the cash requirements of an investment fund.

Over in the futures corner the price for December delivery is $92/lb however for most of the remainder of 2008 the price is $81/lb.

Those of you who held on through the summer battering should be sleeping a little easier now.

Have a good one.

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Sunday
Oct282007

Santoy Resources: A Readers View

Santoy Logo
Every now and again we publish an article from one of our readers, which we think, might be of interest to you. Today’s article is about Santoy Resources, which we have traded in the past but do not own at the moment.

Santoy: Worth A Look At These Levels?

One of the interesting characteristics of the stock market and indeed humans in general is that they rarely behave rationally. As seen mid August, some commodity shares seem to be inextricably linked to the fortune of the general market. This makes no sense as the fundamentals for energy and particularly uranium continue to sparkle.

One of the uranium companies hit hard these past months is Santoy Resources. I like Santoy for a number of reasons. Number one it is an acquisitor with properties close to known deposits in the Athabasca Basin, South East British Columbia, Otish Mountains Quebec and the Central Mineral Belt of Labrador. As a junior, Santoy has been able to attract quality joint venture partners including Mega Uranium, Denison and Wescan in 50/50 arrangements to minimise costs moving forward.

This strategy can be attributed to Santoy’s legendary CEO Ron Netolitzky. Ron was one of the original players in the Saskatchewan uranium rush. At that time he acquired over one million acres in the area before cashing out to switch into gold. He continued in Saskatchewan forming Delaware resources discovering the Snip deposit that ultimately produced one million ounces. In 1987 at $7 Delaware was hit by the stock crash. With a large debt, Ron was able to use his contacts to refinance quickly. Twelve months later he sold out of Delaware for $28 a share.

Ron moved on to developing Eskay Creek that became the fifth largest silver producer in the world. More recently Ron has again been developing precious metal properties with Golden Band, currently the largest landholder in the Saskatchewan La Range gold belt.

Santoy is his latest energy play focusing on properties close to known uranium deposits. It also has a coal bed methane prospect in the Rock River Basin, Yukon Territory. They own 37 percent of Boss Power Corp who are developing the Blizzard property with 1 914 973 tonnes U3O8 indicated resources (historic data). Early drilling has commenced at Mustang Lake showing a hole with similar grading to Aurora Energy’s Michellin deposit. The search continues.

Santoy’s goal is to increase shareholder value by developing properties to a feasibility stage. They have no long-term debt and 14.5 million dollars of working capital. Their CEO understands how to grow shareholder value using quality joint venture deals that minimise dilution. The combination of excellent people and properties may be significant going forward. At present, share price is down significantly and seems to be forming a double bottom around forty-eight cents. It may be worth a new look.

Paul Trevethan
Disclaimer: This is not investment advice.


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Thursday
Oct252007

Mega and Cash Minerals Announce Drill Results

Mega Logo

Mega Uranium Limited and Cash Minerals Limited announced yesterday that their additional drill results from the Igor property as intersecting 0.99% U3O8 and 2.7% Copper Over 4.5 Metres.

Cash Minerals Logo

The company news release went on to say that:

“An iron-oxide copper-gold-uranium (IOCG-U) property located in the Wernecke Uranium District, Yukon. New results include 0.99% U3O8, 2.70% copper, 0.07 g/t gold and 5.7 g/t silver over 4.5 metres at Igor.

Additional drill assays from the 2007 program are expected to be released by the end of the year and once obtained, will be reviewed in order to assist in identifying new targets for the 2008 exploration program”


Should you want to see the tables and read this news release in full then please click on this LINK.

Mega Uranium Limited trades on the TSX under the symbol MGA and joint-venture partner Cash Minerals Limited trades on the TSX Venture Exchange under the symbol V: CHX

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Wednesday
Oct242007

Olympic Dam incurs more losses

BHP Billiton Logo 24sep07

A report released yesterday by BHP Billiton reveals that the company continues to incur losses through having to buy uranium on the spot market in order to fulfil existing contracts, according to The Age newspaper.

Uranium production for the September quarter was 933 tonnes, which is considerably short of the quarterly capacity of more than 1250 tonnes. If we consider that the spot price for uranium is currently $78/lb and Olympic Dam's uranium contract price is less than $US20/lb on-going until 2010, then things don’t look too rosy as this situation will continue to have a negative impact on the companies finances.

Olympic dam photo 27aug07

BHP is one of the mining industries giants so the uranium element of their business may not be so important, anyway the shares closed 8¢ higher yesterday at $46.00.

To read the article in full please click on this LINK.

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Monday
Oct222007

Uranium: Spot price up another $2.00 to $80/lb

The spot price for uranium has now moved up to $80/lb according to stockinterview who refer to TradeTech’s figures of the 19th October 2007.

However the UX Consulting Company are still showing the spot price of uranium at $78/lb. No doubt that they will all agree on the spot price sometime this week. But as we have said before keep an eye on the long-term uranium price and let the day-to-day price fluctuations do what they will. As we write it is strange to see that the uranium stocks have opened down it is almost as though the fall in the price of gold has had a knock on effect to uranium stocks.

Any thoughts?
Sunday
Oct212007

Uranium-Stocks.net: portfolio Update 21 October 2007

To many investors it comes as some relief that the spot price for uranium registered a slight upturn recently as we can see on this chart courtesy of u3o8.com.
Uranium Chart 20oct07
Every little bit helps and it is without doubt pleasing to us to see the recent down trend halted. But, the focus must remain on the long-term price, which is holding at $95/lb. The long-term uranium price has not fluctuated as widely as the spot price and has remained fairly steady. In a market this thin the long term indicator reflects the true situation more accurately than the spot price which is subject to a myriad of influences such as floods, hoarding, government intervention, private investor speculation, fund buying and selling, political instability, geographical hardship and challenges, liquidity calamities, et al. Spot prices in any commodity are subject to knee jerk reactions as our emotions run riot.


Since the last update many of the stocks have started to recover. Its not a time to celebrate but if you have the cash and the nerve it is a time to gently accumulate some more of your favourite uranium stocks.

Below we list the uranium stocks that we have an interest in or are watching with the view to making a future investment. We are also looking for the occasional trading opportunity as we are small enough and should be nimble enough to move in and out of a particular stock quickly as we did in our portfolio of silver stocks recently. This is difficult for the big players who own big positions in their favourite uranium stocks as the thin liquidity of some stocks does not allow them to sell a large position at the push of a button. But that is no excuse for us, so going forward we will suggest from time to time one or two short term trading moves as we did recently with Khan Resources.

Cameco Corporation – Watch
Cameco was trading at $55.09 on TSE recently, but has been down as far as $39.25 and closed at $43.66 on Friday. CCO has a fair number of fans but we just can’t see it outperforming this sector.

RPT Uranium Corp – Watch.
We bought RPT on the 19th February 2007 for $0.42 and sold it for $0.62 on the 13th June 2007 for a profit of 47.6% in 4 months. We still like this stock and so bought it back at around 50 cents; RPT now languishes at $0.26, which is disappointing. This is a small company with a market capitalisation of $24 million. Success rests on the Sibley project where the Company has commenced a 2500-metre diamond drilling program on the Frazer Creek uranium zone on its Malborne Lake claim block near the south eastern margin of the Sibley basin north of Thunder Bay, Ontario. Uranium mineralization is exposed over a 35 metre by 25 metre area, and the first eight grab samples to be analysed averaged 0.242% U3O8.

Uranium Participation Limited – Buy
U was trading at C$10.99 last month and closed on Friday at $12.49, which is a terrific improvement over one month. We bought at $11.97 on 21 November 2006 so U is now showing a small paper profit of 4.3% We will continue to hold, as it offers direct exposure to uranium without the risks inherent in mining.

Strateco Resources Inc – Buy
We made a small investment in RSC at $2.30 so were pleased to see it close at $2.52 last month, however it has fallen back to $2.41, but we are still in positive territory.

Fronteer Developments Group
Fronteer has been transferred to our gold investment account as we now consider it to be more of a gold play than a uranium play even though it still owns the lions share of Aurora Energy Resources, which we track here.

Crosshair Exploration and Mining Corporation – Neutral.
Having taken a small profit we continue to watch CXX. The stock was trading at $1.73 last month and closed on Friday at $2.09. Listing on the AMEX as CXZ provides this stock with exposure to the American stock market where there are not too uranium stocks to choose from.

Laramide Resources Limited – Buy
This stock was $7.36 last month and closed at $8.63 on Friday. We bought at $5.78 on the 28 July 2006 so we are pleased to see this recovery. When we were sitting on a paper profit of around 80% we sold half in order to buy other uranium stocks, as we needed a bigger spread of stocks. Our current holding now shows a profit of 44.63%

Energy Metals Corporation – Now part of Uranium One

Eagle Plains Resources – Buy
This stock is mainly featured on our silver website, but it does have some uranium interests. EPL was trading at $0.76 in the last update and is currently trading at $0.82, for a nice move since we bought it at $0.53, giving us a profit of 54.7%. As we mentioned previously the news flow continues at a reasonable pace and appears to have been well received by the market. Hold on tight to this industry’s ’Project generator’

Mega Uranium Limited – Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $4.35 so we are once again back in the black. MGA has a very good cash position and is well managed so we expect to see it trading a lot higher in the near future.

Rodinia Minerals Inc. – Watch
RM was $0.80 when we first wrote about it on 15 August 2006 and is currently trading at $0.62 so a fairly volatile stock. The volume is still tiny although it is improving with turnover hitting 151,000 on Friday. It is a small company with a market capitalisation of $14.05 million.

Santoy Resources Limited – Watch
However having decided to sell three of its projects to Mega for 400,000 common shares in Mega we decided to sell. We sold on 23 April 2007 at $1.39 for a profit of 70% in 4 months. Santoy now trades at $0.55. This stock is not for us at the moment but they do have a number of interesting joint ventures underway so keep an eye on them.

Khan Resources Ltd - Buy
We bought Khan on the 5th March at $3.63 and it dropped to $1.33 due to licensing issues with the Mongolian regulators. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) the stock rallied and we took a profit of 15% in a matter of days before the stock fell back. Khan closed on Friday at $2.71 up from $2.38 last month so this stock is making progress. However we do need confirmation that the outstanding license issues in Mongolia have been resolved. Also note that LAM took advantage of this turbulence and bought 5.6 million shares in Khan, a good investment in our opinion.

Aurora Energy Resources - Buy
We bought Aurora on the 5th March 2007 at $14.17 and it has traded as low as $10.40 since then, however it is now trading at $15.27 much to our relief, for a small gain of 7.76%.

Strathmore Mineral Corporation - Buy
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $2.55, down overall about 48%. STM has not joined in this recovery, which is disappointing however we will hold for now.

Ur-Energy - Buy
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also gave a second buy signal on the 24th August 2007 when we acquired more stock at $3.03. URE closed on Friday at $3.24 so hopefully the recovery has commenced for this stock.

UraMin Incorporated – gone to that big AREVA in the sky!
We bought UraMin on the 15th May 2007 at $6.72 and sold it for $8.36 on the 22nd June 2007 for a gain of 24.4% in 6 weeks. (Niger Uranium could be a possible replacement but the political situation in Niger is not the best.

Uranium:
We are sticking with our target prediction of $200.00 per pound for uranium although it may now take longer then previously thought. Don’t be put off if we haven’t mentioned your favourite stock we do get it wrong now and again as evidenced by reading our updates. We have survived the carnage and things are starting to look at little brighter.

If you are a new comer to this site please do get involved and add your comments to any of our articles whether you agree with us or not as this will add balance to what we say and be of benefit to everyone. No, you can’t use naughty words.

Please accept our apologies if you were unfortunate enough to visit the site when unwanted Spam is present we have now installed more Spam protection so it should diminish day by day.
Please feel free if you haven’t joined to sign up to the forum and get involved with some of the debates. If there is a subject or uranium stock that you want to discuss then please start a new thread and we will follow with our comments.

Many thanks to all of you who have signed up for our free Uranium Stocks Newsletter; we hope that you are enjoying it. We now have 3461 subscribers up from 3364 subscribers last month and approximately 22,000 readers per week which include a number of stockbrokers, banks and financial institutions, Chief Executives of uranium companies, etc.

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We have been inundated with requests for individual advice, which we are not allowed to give by law so please accept our apologies for not piling in to help you. We have also received a number of requests to cover individual uranium stocks or unique geographical areas, which we will try and get to in the weeks ahead.

A better month overall! Be patient and hang on in there.

Finally well done to the South African Rugby team who beat England last night to become world champions and well done to England who despite being under dogs throughout this competition did us all proud.











Friday
Oct192007

UEX Corporation: Up 31.90% in one day!

UEX Logo 19oct07


UEX Corporation jumped up $2.07 to close at $8.56 as 7.33 million shares changed hands. This increase in activity was due to a news release that reported the Second-Best Hole Ever at the Anne Deposit Intersecting Two Zones of High-grade Basement-hosted Mineralization: SHE-122-1 Intersects 4.73% U3O8 Over 33.7 metres, including 23.21% U3O8 Over 3.6 metres.

Stephen Sorensen President and CEO of UEX went on to say that:

"With the recent success at the Kianna Deposit, Anne has taken a back seat to Kianna, however, that is about to change. Anne's SHE-122-1 ranks in the top five holes at Shea Creek. The escalation of drilling and development programs by subsidiary AREVA at Shea is evidence of their confidence in the potential of Shea Creek becoming a future mining camp in the western Athabasca Basin of northern Saskatchewan."

To read the article in full please click this LINK, which will take you to their web site so you have the information first hand.

Taking a quick look at the chart we can see that yesterday’s closing price is above this stocks previous highs so we are now in uncharted waters and the stock could continue to zoom. The technical indicators are at the top of their range, which would suggest that it is time for a breather, however this discovery and the potential that it offers could negate the technical analysis for some time.

UEX Chart 19oct07

UEX Corporation trades on the Toronto Stock Exchange under the symbol of UEX and has a market capitalisation of $1.57 billion.

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Have a good one.
Thursday
Oct182007

Aurora Energy Resources Inc. Face Monumental Task

Aurora logo 18oct07


Aurora Energy Resources Incorporated is currently preparing a mine environmental assessment to be completed by the end of the year to put before Labrador's Inuit assembly. However a motion, which is scheduled to go to a second reading in the Nunatsiavut assembly in November, directs the self-government not to consent to a mine or mill on Inuit-owned lands, according to CBC News.

William Barbour, the minister of land and resources with the Nunatsiavut had the following to say:

“A committee will in the meantime study the benefits and drawbacks of uranium mining. He said Inuit leaders are feeling a bit overwhelmed by Aurora Energy's proposal.
"Maybe there is a safe method out there today, but these exploration companies who wish to go mining have to convince us that it can be done,"


John Roberts vice-president of Aurora said the company hopes to convince Inuit leaders that a mine can be developed safely and was pleased that the Nunatsiavut was initiating a process to debate the issue of uranium mining.

It is the old chestnut of jobs versus the environment again so we will monitor the situation and report back as and when significant developments occur.

Aurora Energy Resources Incorporated trades on the TSE under the symbol AXU and closed yesterday at $15.84.

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