Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Uranium, Junior Resource Stocks Investor Success Follows Management Success

Commodities / Uranium May 05, 2010 - 09:29 AM GMT

By: Richard_Mills

Commodities

Best Financial Markets Analysis ArticleOne of the soundest strategies for investing in junior resource stocks is investing in management with a proven track record in creating value for their shareholders.

Investors follow these successful mine builders from company to company, year after year, as they build and sell off their success stories to larger companies.


I've been watching one such company for a while. It's run by a management team that has multiple successes behind them - and they just reported their highest grade drill results ever causing the stock to trade multiple times its normal volume.

This junior is headed up by Greg Sedun - a former mining and securities lawyer. He was a founding director of Diamond Fields Resources which was sold to Inco for $4.3 billion in 1996. He was then a founding director of Adastra Minerals which sold to First Quantum Minerals for $300 million in 2006. Mr. Sedun was also a founding shareholder of Peru Copper which sold to Chinalco for $840 million in 2007.

At some point, a string of "wins" becomes a proven track record in creating value for shareholders.

Mr. Sedun is currently the CEO of Uracan (URC-TSX) - a little known Canadian exploration company which is developing one of the largest uranium resources in Canada.

Sedun is partnered with Clive Johnson and Tom Garagan - the two driving forces behind Bema Gold. Bema Gold was sold to Kinross in 2008 for over $3 billion. Also involved in Uracan are Frank Giustra and Gordon Keep - the brain trust behind the single most successful buyout of the uranium mania - they sold Urasia Energy to Uranium One for $3 billion in 2007. That deal went from a 40 cent seed financing to an $8 a share buyout in under two years!

Success follows these guys. And although Uracan has explored only 4% of its 1000 sq km stake, it has already discovered 40 million pounds of compliant inferred U3O8. The average market valuation, according to Canadian brokerage firm Canaccord Capital, is $3 per pound in the ground, giving URC a theoretical valuation of $120 million, or roughly $1 share. Given that URC is trading at 19 cents and has a market cap of $25 million, this suggests a promising value play.

Uranium Spot Prices

Initial drill results were released this week from a new zone at Uracan's North Shore Property in Quebec, the Costebelle, showing grades of almost one pound per tonne. At a long term price of $58 per pound of uranium, Uracan's Costebelle claims are showing an initial gross metal value of $45-$50 per tonne.

The drill results returned grades of 480 parts per million (ppm 0.048% or 0.96 lbs/t) U3O8.

That's 50% higher grade than Forsys Metals and Bannerman Resources have with their African uranium deposits - Forsys has a $320 million market cap and Bannerman has an $80 million market cap. Uracan's uranium is in Quebec, Canada, which has been named the top mining jurisdiction in the world by the Fraser Institute, an independent think tank - North American mining assets often trade at a premium, not a discount.

It appears that Mr. Sedun has brought his Midas Touch to Uracan.

One thing we know for sure is that Sedun has a knack for getting in ahead of the big story, and staying with it until the end. His companies seek to add resources in an environment of surging spot prices. Diamonds, copper and cobalt - he sold them all at the end of extended runs.

Is Uranium due for a run?

Haywood Securities reported last week that uranium production was down at both the Olympic Dam and Rossing mines, two of the largest producers in the world - but the market did not pick up on this. Continued shortfalls are expected in the near to mid-term.

China has quietly approved the construction of 28 new nuclear power reactors by 2020. They are under pressure to convert to cleaner energy sources. Each reactor will require 300 tonnes of uranium a year.

In a recent financial report, Octagon Capital Corporation forecasts a 65% increase in the price of uranium by the year 2013.

These initial 12 URC drill holes into Costebelle represent a 350 m strike length and the system is open to depth and along strike. There are eight holes left to report on from the 20 hole winter program.

Uracan North Shore Property

Greg Sedun is running a company with a large land package in a politically stable, geologically proven area and is reporting stellar drill results. His partners have also realized big gains for their shareholders in the last decade. Keep your eye on the coming drill results this summer.

Many can talk the talk, few can walk the walk, Sedun has proven, more than once, he is capable of walking the walk. For this reason alone Uracan should be on every energy investors radar screen.

Is it on yours?

    By Richard (Rick) Mills

    www.aheadoftheherd.com

    rick@aheadoftheherd.com

    Copyright © 2010 Richard (Rick) Mills - All Rights Reserved

    Legal Notice / Disclaimer: This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in