Uranium Stocks

Fundamentally Uranium

2009-12-07T15:42:00.003-08:00

Bias: Company-negative, Sector-Positive

Geopolitical/Environmental/Exploration Risk

Uranium may be a relatively plentiful compound, but its extraction can be fraught with objections. Countries who do not rely on uranium projects to provide a substantial source of income (ie First World countries) often suffer from objections by their own constituents when a uranium mine--real or potential--is deemed to be too close for comfort.

Case in point an interesting battle in mining-friendly Quebec that pits the doctors of a small northern town of Sept-Îles versus Terra Ventures Inc. (CVE:TAS, TAS.V) . Terra is best known perhaps for having a piece of the Roughrider uber-deposit in Saskatchewan owned by Hathor Exploration Limited (CVE:HAT, HAT.V), but whose Lac Kachiwass project, dubbed as its "most advanced property at this time due to its historic exploration and historic resource estimate" is a potential ~5.6 million lb Rossing-type (large tonnage, low-grade) deposit.

This property was acquired by Terra in March 2007, with additional contiguous properties bought the next year. So far the company is still in the midst of waiting for assay results from their 2009 summer drilling program. Recently the company was allowed to build an access road to the Lac Kachiwass deposit that is 13 kilometres from the town, near Lake Kachiwiss which flows into the municipal water supply.

This has the town's doctors up in arms and threatening mass resignation. Twenty doctors of all disciplines in total, not an insignificant number anywhere and certainly potentially devastating for a small town, have been fighting Terra on grounds of potential uranium contamination.

Terra Ventures will soon divest itself off assets including Lac Kachiwass into its own company while keeping the its core asset--the stake in Hathor's property--within Terra. Surprising? Not so much given the potentially protracted and already-bitter battle in Quebec. Ostensibly, this move is happening as Terra felt the market was only pricing them based on their core asset (Terra has a market cap of ~$22million Cdn).

I am really interested to see how much the market prices in the new company..

Technically Uranium

2009-12-01T23:28:00.007-08:00

Since my last post on November 22nd in which I remarked on a range-bound tightening between $6.35 and $7.30, let's see what our benchweather U.TO has done:

The conclusion? Not much from the looks of it. Closes have been in the range of $6.58 to $7.00 Cdn, so pretty much stuck in the ever-contracting triangle.

In the short term, if my hypothesis stands correct, the trading range becomes even narrower as we head into the end of the year. Specifically in the next two weeks, breakout above 7.2 (ideally 7.4) or breakdown below 6.45 may be important. RSI at 20 certainly indicates some immediate support as evidenced by today's trading action; you can see that this is the fourth time this year RSI has dipped to that level.

It is interesting to see this stock from a different perspective:

Ever since the precipitous fall from grace in April 2007, uranium has been trying to establish a base for the better part of a year now. I can almost convince myself that I see half of a bowl being drawn out, which would be an optimistic viewpoint.

Uranium A Year Later

2009-11-22T23:32:00.006-08:00

Welcome back! It's been a year since my last posting:

http://uraniumstockinvesting.blogspot.com/2008/10/unloved-unwatched-uranium.html

During the last year, survivors did indeed emerge from the purge that not only engulfed the microcosm of the uranium world, but also the macro stock markets in general. Those who had the fortitude to buy established producers like Camecoo (TSE:CCO), Paladin (TSE:PDN), Uranium One (TSE:UUU) among others have been richly rewarded. Then again, this would ring true with buying almost any stock after panic lows set in last fall.

More importantly, let's examine what is to come. An examination of Uranium Participation (TSE:U), my uranium proxy, shows a meandering path that shows essentially no change in the last year. The trading range, however, does seem to be narrowing in an almost symmetrical triangle formation that is tightening between $6.35 and $7.30 range. A break below or above that may give a clue to whether a reversal or continuation of the downward trend will be at play.

Fundamentally, there have been a few developments in the uranium world of 2009, the most notable being BHP Billiton's Olympic Dam incident that will require repairs until Q3 2010 and constricting uranium supply somewhat. Despite this, the spot price of uranium is still at a rather anemic $44US/lb.

Cameco's CEO Jerry Grandey, a fairly level-headed gentleman in my estimation, said that he sees the long-term equilibrium price for uranium at between $50 and $70 per pound, although he expects the spot market price to remain volatile in the short-term.

So what to do? Well, the speculative excesses seem to have drained away by time. I would argue that there has been no change to the positive bias of the uranium story. What's left is market timing, and the more conservative types would probably want see uranium have a breakout before jumping in.

Unloved, Unwatched Uranium

2008-10-26T17:37:00.008-07:00

Well before the rapid plunge of markets around the world and general deleveraging of risk occurred, the price of uranium and uranium stocks had already been correcting. Of course, now with liquidity being the order of the day and indiscrimate selling in all sectors--forced or not--uranium is to many a symbol of the speculative excesses of an era that few could have imagined would end so terribly wrong.

Signs of a top in uranium were there: interest from the general public to a point where uranium was being discussed in mainstream media, the proliferation of hundreds--many of dubious nature--small explorers with uranium in their name competing for investors' money, the parabolic rise in the price of spot uranium. Still, it is easy to view matters with a retrospectoscope, to condemn with post-hoc analyses.

What matters is looking at the present and future. Uranum is still trying to carve a bottom and with its natural link to oil as an alternative fuel, may continue to struggle as demand destruction of oil continues in a period of recessionary and deflationary pressures. As the chart below shows, the price of uranium on the spot market is approaching where they were two years ago:

In the same period of time, Cameco's (NYSE:CCJ) stock price held up remarkably well until generalized selling forced its share price to sharply capitulate since July, essentially lopping off two-thirds of its value and forcing it to trade well below its NAV. And this the chart of the biggest "pure" uranium company in the world; one can just magine what the comparative charts of smaller junior explorations look like.

And yet, in this new era of pronounced fear, pessimism, or downright apathy to anything financial related, the small subset of bold investors look at the amount of blood on the streets, fight down their own misgivings, and logically reconsider the fundamentals of the uranium story. Nuclear reactors are still being built around the world and they will need fuel. Massive oil finds are a thing of the past and people need alternative energy sources, with the benefit that even environentalists are starting to acknowledge that nuclear may be viable part of a greener future. Add in the possibility that dozens--if not more--of the smaller uranium companies may fail in the coming months due to the credit crunch may provoke one to start thinking of the million dollar question: who will be left? Because yes, uranium is for real and yes, the few survivors left will eventually rise up again to new heights.

BNN Uranium Stocks, Rob Lauzon (II)

2007-12-07T21:45:00.001-08:00

Rob Lauzon Middlefield Capital on Thursday Nov 29

URANIUM ONE (TSE:UUU): they have their own issues; we trimmed half our position around $13 when Kazakhstan government enacted laws that allowed them to change natural resource law. It got me thinking, once Uranium One really starts making cash flow out of Kazakhstan in 2-3 years, will they change their contract. Subsequent to that, company basically reduced production guidance by about 40% due to sulphuric acid shortage in Kazakhstan. Also they are having problems commissioning their Dominian mine as well. This company has had many rosy projections, CEO was talking about $200 uranium, too promotional. They bought Urasia and EMC, two big large acquisitions, question is do they have labour, manpower to integrate. It is underweight, management has to prove themselves to investment community because most of community has been disappointed. Until we see production come on stream sooner, the stock should trade back to $11-12 but we are in wait-and-see mode until then.

UUU 3mo and 2yr charts

UR-ENERGY (TSE:URE): yeah I would buy it at this price. This is an in-situ leach recovery method, more environmentally friendly, lower cost. They have two projects that they are working on bringing into production probably in 3 years, Lost Creek and Lost Soldier. They filed some permits, looks like they are on track. They have about $1 in cash; if you buy it around $3.50, quite insulated. You really want to load up if at $3, currently looks good value. For anyone looking for near-term exposure in US, Ur-Energy is definitely takeover candidate.

URE 3mo and 2yr charts

My Take:

Uranium One is the amalgamation of two of my previous picks, sxr Uranium One and Urasia, with EMC thrown in for good measure. The stock has been battered by production problems in Kazakhstan, where sulphuric acid, a necessary reagent for uranium production, is in short-supply. The company is trying to address the issue and the company uranium producer in the country, government-owned Kazatomprom, is building a sulphuric acid plant, but will not come onto production until 2010. Uranium One is having experiencing similar growing pains as Paladin, but after the tax loss season is over, investors should give a hard look to these new uranium producers who have been rightly discounted by production issues, but whose share prices will appreciate once these growing pains have been addressed.

Ur-Energy is another one of my favorites; its strength of management led by long-time uranium specialist William Boberg and geographic stability in the US, coupled with a matter-of-fact, low-key approach leads me to believe that this stock is worth holding onto long-term.

BNN Uranium Stocks, Rob Lauzon (I)

2007-12-02T13:38:00.000-08:00

Rob Lauzon Middlefield Capital on Thursday Nov 29

TRIEX MINERALS (CVE:TXM): it is a name we quite like as an exploration company; it comes with it risk of being exploration company, not producing uranium; their goal in 5 years to find uranium in east side of Athabasca as well as Hornby Basin and Alaska. Triex actually raised some money yesterday, I purchased more shares, think it is great buying opportunity. They staked early claims near McArthur River near producing mines; the Pasfield Lake project looks quite exciting over next year, year and a half. I think it will probably trade to $3.50-$4.00 in next 6 months.

TXE.V 6mo and 2 yr charts

CROSSHAIR EXPLORATION (CVE:CXX): we are watching Crosshair quite closely, had some pretty interesting drill results, drilling in same area as AURORA ENERGY (TSE:AXU) in Labrador; comes with it risk as exploration play, a lot of fixed cost if they ever decide to build a mine due to lack of infrastructure; potential for this company and AURORA to share cost. We do not own it right now but we are looking at and in our radar screen.

CXX.V 6mo and 2 yr charts

PUREPOINT URANIUM (CVE:PTU): looking at the chart it has probably found a bottom here in the 35-40 cent range. We do own a small amount of Purepoint in a few of our smaller funds that purchase flow-through shares. The one thing about Purepoint is that they have staked a lot of land in swampy deep areas of Athabasca, tougher to find it and more expensive if they do find it.

PTU.V 6mo and 2 yr charts

My Take:

Crosshair is the largest of the three companies mentioned, with a market capitalization of around $130 million Cdn while Triex is at $55 million and Purepoint is only worth around $19 million. Risk, of course, is understandably inversely correlated to these rankings. The project mentioned in Labrador for Crosshair is its Central Mineral Belt Uranium Project, in which they are going to start drilling again after the new year. Its bigger cousin, of course, is the $1 billion company Aurora Energy, who differ in that the latter has an NI 43-101 compliant resource.

Query: Opportunities Amidst Disinterest

2007-12-01T23:37:00.000-08:00

As alluded to in my last post, much speculative interest and short-term momentum has gone out of the uranium sector. Share prices that went parabolic just months ago have come back down just as or even quicker than they ascended. And still, if one believes in the fundamental story (and really, you only have to consider the logic in governments just suddenly abandoning their billions of dollars budgeted for new reactors overnight) of increasing uranium demand, even the pain endured over the last several months can be tolerated.

However, words can and should only sway so much. What follows are chart examples to illustrate my point.

DENISON MINES (TSE:DML AMEX:DNN)

3 months

DENISON MINES (TSE:DML AMEX:DNN)
2 years

PALADIN RESOURCES (TSE:PDN)
3 months

PALADIN RESOURCES (TSE:PDN) 2 years

Yes, the last few months have not been kind to uranium equities. Fluctuations in the spot price and an overdue correction took its tool on most uranium stocks, from seniors like Denison Mines and Paladin Resources all the way to the hundreds of small uranium juniors, including many of the more risque types; many of their 3 month charts look a lot worse than the two I have shown.

Regardless, the point of showing a 3 month and a 2 year chart is to point out that the long term trend has not been broken, mostly in part, I belive, to the fact that the uranium story itself is a good one, a valid one, and one that has not changed materially in the last several years. Corrections will come and go, this one lasted a good several months, but they also present as buying opportunities to the patient investor with an eye for short-term bottoms.

Both of these stocks seem to be oversold at this point and I would be shocked to see either of these be lower than their current price in several months.

What about Uranium

2007-11-29T20:07:00.000-08:00

Apologies for the lack of posts in the last few months, I have had to concentrate on other endeavours. Much has happened in the uranium sector, a volatile uranium spot price accompanied by a sharp correction all equities uranium. However, in all bull markets there are the inevitable corrections. I will explore in the next few posts whether or not people should be going back into uranium equities.

I start off with the opening blurb from BNN today with Robert Lauzon of Middlefield Capital:

We are still quite bullish..if you look at long-term market where most transactions occur, it has been at $95 per pound for 6 months and has not moved. Unfortunately the equity market tends to trade off spot market, where only about 10% of uranium volumes trade, been volatile, traded from $80 to $136 back to $75, now at $93..we think uranium equity shares are forming bottom. Alot of the fast money out of sector, need to wash out fast money before forming bottom..the fundamental investors looking at high uranium prices next five years I think will prevail.

Paladin Resources: Next Uranium Takeover?

2007-07-22T17:18:00.000-07:00

In these days of multi-billion dollar M&A largesse, $4.5 billion Cdn Australin uranium upstart Paladin Resources (TSE:PDN) just might be a potential takeover candidate, if the rumors swirling around are true. Potential suitors being bandied around include Canadian uranium behemoth Cameco Corporation (NYSE:CCJ TSE:CCO), French counterpart AREVA, and always lurking in the background, BHP Billiton. Another name tossed in is Uranium One (TSE:SXR), itself a $5.1 billion product of recent mergers.

Paladin has been busy the last several months. At the beginning of June, the company closed its bid for Summit Resources Limited, acquiring 81.8% of shares and taking full control of the Valhalla exploration project for all intents and purposes.

On a more sobering note, however, Paladin spent the rest of the month defending its Kayelekera Project in Malawi. First, both the company and government were sued by NGOs to delay the project until issues with Malawi's Environmental Management Act (EMA) as well as protective measures for the local community were addressed; the government has said that it has fully complied with the EMA. Secondly, Paladin reiterated its stated goal of commissioning Kayelekera in September 2008 and dismissed contentions that there may not be sufficient power for the project as the company is placing an order for a 10MW power generation facility.

Rarely seen on the defensive through its meteoric rise as a uranium upstart, Paladin also had to announce a 130,000lbs shortfall of uranium from a projected 400,000lbs to the end of June due to initial start-up issues at the Langer Heinrich project in Namibia. The company is still confidant that Langer Heinrich will ramp up to fulfill its 2.6 million lbs of yellowcake a year production target.

A look at the 2-year chart of the company exemplifies the current weakness that Paladin is experiencing, probably exacerbated in recent weeks by the pessimism in the uranium sector as a whole. Naturally, takeover speculation arises as other companies evaluate the intrinsic value of Paladin and compares it to the marketès current valuation. Astute uranium investors looking to buy this stock must ask themselves whether they believe that Paladin's is just having some growing pains transitioning from an upstart uranium explorer to a bonafied uranium producer, or is there something more fundamentally wrong?

Uranium Stocks: Short Selling

2007-07-16T17:29:00.000-07:00

As short interest mounts in Cameco Corporation (NYSE:CCJ TSE:CCO) to 6.2% of shares outstanding, short sellers are betting that the confluence of certain factors presents a ripe time to bet against a uranium stock that has seen a healthy YTD increase.

The first decreases in the uranium spot price to the current $129US/lb, coupled with Cameco's July 11 announcement of further delays in Cigar Lake that will delay production until at least 2011 have spurred short sellers into their present bearish position on the uranium giant.

As Cameco struggles being the bellweather uranium stock most synonymous with general market sentiment, the pessimism surrounding the future trends of yellowcake has never been greater. This is further exemplified by the essentially flat performance of other uranium seniors not named Cameco.

Whether it be Paladin Resources (TSE:PDN) or sxr Uranium One (TSE:SXR), and to a lesser extent, Denison Mines (AMEX:DNN TSE:DML), they have collectively been both flat YTD in the context of an ever-rising North American market. Moreover, they have reacted very little to the announcement to delay Cigar Lake for another year; usually a bullish supply-demand argument, it carried much less weight in the context of falling uranium spot prices.

However, one must remember that we saw a diversion between the uranium spot price and uranium stocks much earlier in the year. While uranium spot has essentially doubled YTD, the aforementioned uranium seniors-not-named-Cameco have assuredly not. In this context, although much fear has been injected in recent weeks as experts predict a uranium meltdown scenario where the spot price plunges, the astute observer will question exactly how much froth is in these stocks.

Yes, there are concerns overhanging uranium stocks: millions of pounds held by funds who have no intention of using uranium, nuclear utilities who are banding together to collectively halt the rising spot price, and the general inability for uranium stocks in the last few months to head higher despite favorable market conditions. Even so, the fundamental story of nuclear power must dictate that investors take advantage of irrational overselling and stake positions when fear and apathy abounds.

How Are Uranium Seniors Holding Up?

2007-06-19T19:59:00.000-07:00

The Uranium Focused Energy Fund (TSE:UF.UN), a brainchild of the Middlefield Group, is currently a $228 million vehicle with a singular focus on the uranium sector. With its top 10 holdings being such recognizable names as Cameco, sxr Uranium One, Denison Mines, Paladin Resources, BHP Billiton, Rio Tinto, Energy Metals, First Uranium, Uranium Participation and UEX, this fund aims to capture masses of new investors who may not be comfortable buying individual uranium stocks and partake in their inherent risk. Of course, the caveat here is that, being a specialty fund in the first place, is subject to considerable inherent risk itself.

Dennis DaSilva, portfolio manager, Middlefield Financial Limited, stated on BNN several weeks ago that:

The [uranium oxide spot] price, which is significantly disconnected from the equities quite strong, stable at US $120/lb, that is up from $113/lb about three weeks ago. People are obviously trying to figure out where is the high, how far it is going to go. We are not making predictions, obviously for a fund such as ours, we have a long term view, the fund goes approximately for six years, and that coincides with our view on uranium in general, and that is the fundamentals of balance between supply and demand will not reached for at least six or seven years, if that at all. We are certainly not trying to predict $200 or $300 uranium prices, we just think we are in a very strong environment for prices, sticking to the better producers and near-producers and companies with the best odds of finding reserves and bringing them to production as the focus of the fund.

Since that time, the uranium spot price has increased to $138 while the long-term price indicator is at $95/lb. The Uranium Focused Energy Fund, on the other hand, has treaded water, hovering right around its initial subscription price. These uranium seniors, taken as a whole, are weathering the effects of the summer doldrums in commodities. Many uranium juniors have not been as fortunate, as the main TSX index has diverged from the junior Venture Exchange.

With an extended 1 month+ correction, some interest has seemingly left the uranium sphere, although the underlying fundamentals remain the same. The spot price rises, utilities complain, and the beat marches forward. Just yesterday, Global Uranium Fund (TSE:GUR.UN), closed its $100 million IPO. It will provide yet another avenue into which the casual uranium investor can sink their money.

Uranium World This Week

2007-05-19T11:57:00.000-07:00

Yellowcake
Uranium futures for June traded at $134.90/lb, above the spot price of $120/lb. While on the surface, trading U3O8 futures on the NYMEX has barely created a ripple, uranium bulls believe that anything that serves to focus American investors to yellowcake is a good thing.

Speaking of American-listed Stocks..

Denison Mines, who started to trade on the AMEX under the symbol DNN a month ago in addition to its existing DML listing on the Toronto Stock Exchange, has remained resilient during the May correction that has recently hit other uranium stocks. Whereas its most-oft quoted rivals sxr Uranium One and Paladin Resources have traded mostly sideways and down respectively, Denison’s share price has appreciated, despite reporting a net loss of $5 million in Q1 and slashing uranium production forecast at its shared McClean Lake mine by as much as 40%. With the comparative dearth of available American-listed uranium stocks as compared to Canadian ones, Denison has adroitly positioned itself despite some recent disappointments.

Auctioning off Energy Metals Corporation
A $1.4 billion Cdn uranium play with in-situ recovery (ISR) properties in the United States, Energy Metals (along with Strathmore Minerals) was one of the earliest companies to scoop up potential uranium assets in the States; today it possesses over 350,000 total acres. Besides continuing to grow its uranium resource base, the company is trying to fast-track uranium production. Recently, the company announced a 1.4 million lb sales contract over six years beginning in 2010 for its Hobson/Palangana uranium project in Texas that is slated to start producing in 2008.

Potential suitors for Energy Metals include sxr Uranium One, Cameco Corporation, and French nuclear giant AREVA. So far the company is keeping mum on its negotiating partner, but one thing is for sure: the pace of uranium M&A activity will continue to intensify as in other resource sectors.

May 10 Uranium Stocks Update: Paladin Resources (TSE:PDN)

2007-05-10T17:55:00.000-07:00

Befitting its status as one of the go-to uranium plays, Paladin has made steady progress over the last few months. Its flagship Langer Heinrich project in Namibia opened and should have been running at 100% of design throughput since late April. The company projects that Langer Heinrich will reach output of 2.6 million lbs of yellowcake per year sometime next month; an expansion late next year should increase output to a minimum of 3.7 million lbs/year.

Meanwhile, its Kayelekera project in Malawi will be 85% owned by Paladin and 15% by the government, a compromise that assures the company of ten years worth of no taxation or royalty increases. A bankable feasibility study (BFS) confirmed the viability of Kayelekera to produce 3.3 million lbs of yellowcake over the first seven years, with a CapEx of $185 million. Environmental approval and a mining license has also been obtained by Paladin and the project is slated to be commissioned in September 2008 with full production expected Q2 2009. In addition, the threat of non-governmental organizations (NGOs) in Malawi potentially stopping Paladin from mining seems to have faded as local support for Kayelekera appears to be strong.

Putting the two projects together, if Paladin continues to meet production deadlines (which the company has been able to do thus far), it expects to cash flow ~$2.8billion US from now until 2012, assuming a yellowcake price of $90 US/lb.

Moving to the acquisition side of things, Paladin appears to be successful in its second bid for Summit Resources Ltd, which holds 50% of the Valhalla uranium deposit in Western Australia. As of April 27, the company had received acceptances of 58.21% of Summit’s issued capital and has also extended the bid period until May 18. However, the caveat here is that Areva, the French uranium giant, has filed a complaint against Paladin with the Takeovers Panels, insisting that Summit shareholders be allowed to decide on the deal at a general meeting. Areva owns a 10.46% stake in Summit, so this controversy could take some time to resolve itself.

With a $4.2billion Cdn market cap, Paladin is by no means a small company anymore, but with one of the best track records thus far of uranium producers, continues to trade at a premium. Truly a good stock to hold and perhaps buy on weakness.

Uranium Players Predicting Uranium Price

2007-04-24T23:00:00.001-07:00

I have decided to compile a list of analysts and management who have come out publicly and tried to predict where the uranium price is going. As you notice, some have not given timelines. The dates are as accurate as I can make them, although they might not be exact. Notice that, as the uranium spot price continues to move up, analysts who were more conservative with their targets started to revise upwards. After the crash however..

Oct 8, 2008 JP MORGAN $65.98 avg 2008, $64.75 avg 2009, $71.50 avg 2010, $65 long-term
Nov 28, 2007 PATRICIA MOHR, SCOTIABANK $95-100 in 2008
April 17 CIBC WORLD MARKETS $140 in 2007, $160 in 2008
April 11 BRENDAN KYNE, LEEWARD HEDGE FUNDS $150-200 next two years
Apr 10 NEAL FRONEMAN, CEO SXR URANIUM ONE $150 end of 2007
Apr 10 LAURENCE ALEXANDER, JEFFREY & CO. $115 avg 2007
March 29 ABN AMRO, GLOBAL BANK $140 2007-2010
March 29 JOHN WILSON, RESEARCH CAPITAL RESEARCH $125 2007, $140 late 2008
March 6 Australian Bureau of Agricultural and Resource Economics ABARE $94.20 avg 2007 $103avg 2008
Feb 27 ABN AMRO, GLOBAL BANK $95 2007
Feb 26 PATRICIA MOHR, SCOTIABANK at least $90, appear headed to $100 end 2007
Feb 12 PHILLIP SHIRVINGTON, CEO URASIA ENERGY >$100 2007
Feb 12 NEAL FRONEMAN, CEO SXR URANIUM ONE >$100 2007
Jan 31 YURIY NEDASHKOVSKY, UKRAINE DEPUTY ENERGY MINISTER $122 end 2007
Jan 29 BRENDAN KYNE, LEEWARD HEDGE FUNDS $100 in 2007, $125 in 2008
Jan 8 RESOURCE CAPITAL RESEARCH $90 mid 2007, $115 late 2008
Jan 7 PATRICIA MOHR, SCOTIABANK $90 by end 2007
Jan 7 ADAM SCHATZKER, RBC CAPITAL MARKETS $100 in 2007
Jan 5, 2007 PETER GRANDICH, THE GRANDICH LETTER $100 ?timeline
Dec 21, 2006 BART JAWORSKI, RAYMOND JAMES $90 in 2007
Dec 11 ANITA SONI, MERRILL LYNCH $75 in 2007
Nov 7 LUKE BURGESS, GOLDWORLD.COM $110 by 2010
Nov 6 JEAN-FRANCOIS TARDIF, SPROTT ASSET MANAGEMENT $70 by January 2007
Nov 6 BOB MITCHELL, ADIT CAPITAL MANAGEMENT LP $80-100 ?timeline
Oct 18 DOUG CASEY, CASEY RESEARCH $100-150 ?timeline
Oct 18 GARY STOKER, NUFCOR INTERNATIONAL >$60 in 2007
Oct 16 JOHN ZECHNER, JOHN ZECHNER ASSOCIATES $80-100 ?timeline
Sep 12 DEUTSCHE BANK AVERAGE URANIUM PRICE $59 in 2007
Sep 12, 2006 CIBC BANK $70 by end of 2007

This list will be updated regularly.

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Newsworthy Uranium Tidbits of the Week

2007-04-22T20:33:00.000-07:00

China

Like every other country that is in the midst of building nuclear reactors, China is scrounging to secure future uranium supplies. Its Commission of Science, Technology and Industry for National Defense just came out with a report that emphasized the need to mine its own uranium oxide.

While China had finalized an agreement with Australia last year in the hopes of securing the latters' uranium supply, political uncertainty still abounds and the prospects of massive uranium production expansion from new mines in Australia is not likely going to happen. Still, as a testament to how serious China is about securing future supplies, Sinosteel Corporation will buy a 60% stake to manage and operate Australia's Peppinnini Minerals' exploration licences.

Closer to home, several areas near the Tibetan and Kazakhstan borders are being recommended as possible exploration targets. Kazakhstan, of course, has ambitious plans to become the world's biggest uranium producer and is in the enviable position to be geographically bracketed by Russia and China, two of the forerunners in the nuclear renaissance.

Specific companies that could stand to benefit include Urasia Energy, with operations in Kazakhstan and who just merged with sxr Uranium One to become a global uranium producer. Another company is Khan Resources, with a 58% interest in the Dornod project in Mongolia; they expect to mine 4-5 million lbs of uranium over 10 years, with the results of a pre-feasibility study due in mid-2007.

Uranium Futures
Probably a sign that uranium is progressively getting on peoples' radars, the New York Mercantile Exchange (NYMEX) is teaming up with Ux Consulting to allow uranium futures to be traded starting May 7. The reasoning behind this move ostensibly was to provide more transparency in uranium prices. Reaction has been mixed, with analysts not really sure one way or the other how this will affect the overall uranium environment.

April 15 Uranium Stocks Update: Energy Fuels (TSE:EFR)

2007-04-15T22:58:00.000-07:00

In the past week, Energy Fuels has broken out of its consolidation phase to the upside. Several drivers can be attributed, including a recent filing that the Resolute Performance Fund-a $750 million private mutual fund with $150,000Cdn minimum initial purchase and a 70% compounded return since 2005-had bought a 11.4% stake in the company back in the middle of December 2006. In addition, the stock rose double digits when president and CEO George Glasier went on Canada's Business News Network last Friday to espouse the virtues of his potential uranium producer. Below is an excerpt of the interview:

George Glasier, president and CEO, Energy Fuels Inc.

Uranium Regions in the US
We are in three states right now, Colorado, Utah, and Arizona. These states produce significant amounts of uranium. The original company that I was with was Energy Fuels, the largest uranium producer in the United States, produced about 5 million lbs/year, twice as big as next largest producer in the US. The area of Colorado was the first area where uranium was produced in North America, occurred in the 1940s with the first weapons programs.

Near-term Projects
We have our first mine refurbished, production coming out this year from Whirlwind mine in Colorado. Second mine will be in Utah, Energy Queen mine. Tenderfoot Mesa to come out early 2008. Since these are mines that are already developed, CapEx for Energy Queen $1.5 million, the others $1 million, includes all rehabilitation and equipment needed. Drilling budgets $2 million on all of our properties.

Funding
We had a raise of $30 million December of 2006, plenty of cash to do everything that we need to do, including putting our first production on the ground at the mill. With our cash position we are completely set to go forward with all of our plans

Acquisitions
We are still acquiring properties, have a number under negotiation. We have the database for virtually all properties in Colorado, Arizona, and Utah. So with the database we judge which properties have merit and we pick up properties which can be put into production fairly quickly, within next two to three years.

When Profitable?
Soon as we start milling production, as early as 2008. We only need uranium to be about $30/lb to be profitable, wiggle room given uranium is $113/lb now.

Outlook
Although there might be some short-term downward selling pressure due to the emergence of free trading shares from the previous financing and some investors wanting to book profits from the latest move, Energy Fuels looks very well-positioned right now. Execution is the key here as this company needs to prove that it can indeed be a uranium producer in short order.

Uranium Spot Price to $113/lb

2007-04-09T22:06:00.000-07:00

As the uranium spot price skyrocketed from $95/lb to $113/lb this week amidst increasing demand in the face of new supply concerns, even analysts who have been bullish on the metal have seen their target prices surpassed, and by a wide margin. For example, Patricia Mohr, who oversees Canadian bank CIBC's Commodity Price Index, has had to revise her estimate upwards already this year; her most recent prediction of yellowcake that "appears headed to $100 at the end of 2007" is already $13 lower and 8 months later. No, the era of uranium is far from over, it seems.

Indeed, signs of increased investor attention to uranium has filtered into the United States. Coinciding with the upward price movement in uranium was a new 52-week high for uranium supplier USEC Inc. USEC, which trades under the symbol USU on the NYSE, operates the only uranium enrichment facility in the United States; it also is in charge of recycling uranium taken from old Russian nuclear warheads and converting it into useable fuel. As one can see from the chart, USU has had a nice run, rewarding investors with nearly a double over the last six months and appreciating to a $1.6billion US market cap.

As impressive as USU's return has been, there are comparable uranium stocks with a primary listing in Canada on the Toronto Stock Exchange (TSX) that also trade on the Pink Sheets. Emerging uranium producers Paladin Resources ($4.9 billion Cdn), Denison Mines ($2.9 billion Cdn), and soon-to-be-merged sxr Uranium One ($2.5 billion Cdn) and Urasia Energy ($3.8 billion Cdn) all have 1-year returns that exceeds that of USEC: Denison itself has returned ~250% during this span:

As unhedged uranium producers who have had relatively short corporate histories and were not forced to sign long-term contracts when the uranium market was depressed, they are able to fully leverage the increasing uranium spot price. Increased costs of production certainly remain a concern, something all mining outfits would agree upon, but investors are betting that these emerging uranium powerhouses have managed to find the perfect confluence of emerging production profiles in the background of an ever-increasing prices.

Momentum in Favor of Uranium Stocks

2007-04-05T00:08:00.000-07:00

Five weeks after the violent global correction in stocks, a series of positive drivers have buoyed uranium stocks back near their previous levels. Highlights include:

March 7: Australia's Energy Resources declaration of force majeure on its sales contracts as a result of flooding in its Ranger mine
March 19: Cameco details remediation plan for its Cigar Lake mine, targets 2010 production
March 20: Uranium Focused Energy Fund closes $195 million IPO
March 23: Uranium spot price raised to $95/lb

Because its news regarding Cigar Lake was deemed to be better than expected, Cameco's stock has regained much of its luster, traversing from $36 to $45 on strong volume in a matter of weeks, buttressed by a "top pick" recommendation by RBC with a target price of $60.

Meanwhile, Cameco's upstart competitors which includes Paladin Resources, Urasia Energy, Denison Mines and sxr Uranium One have also benefited from their status as those few uranium producers with market caps >$2 billion Cdn, receiving the lion's share of new investor attention and institutional support. For example, the bulk of monies in the new christened Uranium Focused Energy Fund will be to hold these "uranium seniors".

Thus, as the inevitable countdown to $100/lb uranium continues, the uranium fundamental story seems to be solidifying. However, the caveat remains that another sudden downturn in the broader market, as what happened in May 2006, may temporarily take the wind out of these stocks in a big way. To me, a vital sign of broader investor confidence would be to take out the old TSX Venture high; otherwise, the threat of a triple top looms and whatever momentum uranium stocks garnered in the last few weeks would be in jeopardy.

9th Uranium Stocks Pick: Energy Fuels (TSE:EFR)

2007-03-18T09:40:00.000-07:00

Energy Fuels Inc. (TSE:EFR) is a Canadian-based uranium exploration and development company that is trying to capitalize on the uranium price escalation (latest spot price $91US/lb) by putting into production several old mines recently acquired in the United States.

KEY PROPERTIES

Whirlwind
Energy Fuels acquired the Whirlwind properties located in Utah and Colorado several months ago. The key in the acquisition is its uranium and vanadium Whirlwind mine. A January 2007 NI 43-101 compliant technical report of the mine disclosed current Indicated resource of 657,000 lbs of uranium oxide and 2.17 million lbs of vanadium oxide based on 69 drill holes while recommending further drilling to be done; the company has contracted another 19,500 feet of drilling to be finished in 2007 on its Whirlwind claims in hopes of finding additional deposits.

In order to put the Whirlwind mine into production and graduate from production visibility to the select group of producers, the company needs to meet certain goals, including steps to rehabilitate the mine (expected to start Q2 2007 lasting 6 months with expected CapEx <$1 million), negotiating a tolling arrangement, preparing a pre-feasibility study, and obtaining full approval of the expansion of its existing permit. If everything goes as planned, Energy Fuels plans to reopen the Whirlwind Mine by late 2007, with processing scheduled a year later once stockpiles have been gathered to adequate levels.

Energy Queen
Located in Utah, Energy Fuels is planning to bring this existing mine into production with a $2 million US mine rehabilitation program that, although the company has a mining permit in place, will require a dewatering permit. Stockpiling of material is optimistically projected to be in mid-2007.

Tenderfoot Mesa
These claims include two past-producing uranium mines called Sapphire and Torbyn located in the Uravan Mineral Belt; the latter mine was reopened in Q4 2006 with some minor rehabilitation. Again, material could be stockpiled as early as mid-2007, with the company expected to drill another 21,500 this year to further delineate these claims.

Personnel
Energy Fuels is run by very experienced people, most of whom were part of its predecessor company, Energy Fuels Nuclear Inc.. Indeed, the current President and CEO of uranium behemoth Cameco Corporation, Gerald Grandey, held the same positions at Energy Fuels Nuclear and its former VP Marketing and Corporate Counsel, George Glasier is Energy Fuels’ current president and CEO; the former VP Exploration, Chief Geologist, Mill Manager, Mine Superintendent and General Mine Superintendent of the predecessor company—which was the largest uranium producer in the United States in the 1980s—have since returned to upgraded roles in this new incarnation.

Stock and Future Developments
After more than tripling in just a month from the middle of October to November 2006, Energy Fuels’ stock has spent the next four months consolidating its gains and making a solid base to prepare for another run. The company had been hampered by tardiness in filing its most recent financial statements, which it has since remedied. Furthermore, its stock will likely be buoyed by approval to start trading on the bigger Toronto Stock Exchange on March 19th, with a spade of announcements expected in 2007 in regards to drilling results, permitting, and updates on mine re-openings.

With $28 million in the bank (as of Jan 7, 2007) and no debt outstanding, Energy Fuels seems poised to capitalize both as a uranium junior with production visibility and as a potential takeover candidate for one of the emerging uranium seniors, given its mines are within striking distance of Denison’s White Mesa Mill and also sxr Uranium One’s Shootaring Mill—although the company might in the end decide to build their own. Certainly, with the vast amount of work still needed to be done, Energy Fuels has perhaps an overly ambitious timeline to production, but still represents a solid uranium stock that has real assets to work with and should be in production when uranium prices are expected to peak in 2008-2009.

Another Uranium Mine Flooding: Spot Price Jumps to $90US/lb

2007-03-11T18:05:00.000-07:00

We are coming up onto a crossroads two weeks post-global correction that started February 27. The resource stock-laden Canadian TSX Venture Index dropped from 3,274 to 2,955 at closing March 5, a haircut of almost 10%. Since then, it has climbed back up to 3,127 and is looking for direction: will it rise and try to break through a double top (May 2006 being the other peak) or further correct downwards after last week's bounce?

Since the bulk of North American uranium stocks are listed on the TSXV and generally move more or less in lock and step with the exchange, overall sentiment should be gauged. However, if one is relatively assured that the correction is mostly over and done with, there seems to nothing that can obstruct uranium stocks from buoying higher.

This is because the uranium fundamental story that concretized in many investors' minds after Cameco's announcement of its Cigar Lake mine flooding back in October 2006 will now be buttressed by news of another unforseen flooding: the Ranger Mine of Energy Resources of Australia Ltd. (ERA). On March 7, ERA sent out a press release describing the aftermath of cyclone George on its uranium mining operation. First, a force majeure was declared by ERA on its sales contracts as a result of the flooding. Second and more importantly, its first quarter production is estimated to be between 20-30% lower than last year, with second quarter impact still yet to be assessed. James Finch of Stockinterview.com penned an article suggesting that the impact of the Ranger mine flooding could be the reduction of 4% of 2006 worldwide uranium production, a figure that simply cannot be made up by new production this year.

Indeed, Tradetech's March 9th report raised the uranium spot price from $85 to $90US/lb in part due to ERA's surprise announcement. It seems that the psychological $100/lb of uranium oxide will be broken sooner than expected, although analysts have already been revising their uranium estimates upwards.

Thus, as long as the broader markets remain stable, uranium stocks, especially newly-minted and near-term producers with unhedged uranium sales contracts will likely see short-term appreciation: this list includes sxr Uranium One and Urasia Energy, two uranium juniors who will merge together shortly, as well as Paladin Resources and Denison Mines; Denison, itself a recently-merged company from International Uranium Corporation and Denison Mines, is in the process of applying for an AMEX listing in hopes of attracting some of the nascent American investor interest in uranium stocks.

Broad Market Correction: Safe to Buy Uranium Stocks Yet?

2007-03-06T18:50:00.000-08:00

The rapidity of last week's events caught many investors off guard, with the precipitate being China's Shanghai Composite Index falling nearly 9%; the reason for decline, I might mention, was the government's fear of rampant market speculation, and not attributed to fears of China's economy slowing down. Indeed, one of the influential bulls of our investing world, CIBC's Jeffrey Rubin, noted that where China's economy has grown on average 9-10%/year, its stock market actually declined significantly in the years before this and last, so the correlation is certainly not strong between stock market trends and overall economic outlook in the East.

Rumors of a slowing Asian economy, US sub-prime collapse, or unwinding of the Japanese carry trade notwithstanding, markets found any and every excuse to correct downwards. However, it is important to stress, as I had before during the mini January correction, that uranium fundamentals have not changed. Whether it is commodities guru Patricia Mohr of Scotiabank (at least $90, headed to $100 end of 2007), CEOs Phillip Shirvington and Neil Froneman (>$100) of soon-to-be merging uranium mid-tiers Urasia Energy (UAEYF.PK) and sxr Uranium One (SXRFF.PK) or Australian Bureau of Agricultural and Resources Economics ABARE ($94.20 average this year, $103 average 2008), forecasts for yellowcake have only been revised upwards.

The extra haircut that uranium stocks experienced was NOT because of an annoucement from Cameco, theoretically, stating that its flooded Cigar Lake mine would be coming back online soon, but more likely was becuase uranium stocks were extremely overbought and desperately NEEDED the correction. Too many speculators, too much froth. A chart of Energy Metals below typifies the technicals of many many uranium stocks lately that scream for a much needed correction.

Judging by the double-digit rebound in uranium stocks today, coupled with my view that nothing in the broader macroeconomic world or in the uranium world convinces me something is fundamentally different now than a week ago, I venture to say that the worst is over. Not to say there will not be more correcting now and, certainly, sharp, short corrections will be present in the future, but the risk-reward balance seems to have shifted sufficiently for many uranium investors to have regained confidence already.

Casey's Energy Speculator

2007-02-28T10:42:00.000-08:00

Preface: Casey's Energy Speculator is a subscription-based publication written by people smarter than I am. Plus, if you sign up using the banner above or the link provided below, I get some revenue too!

The Casey Files:
For more than twenty years, Australia-with its rich uranium resources-has been largely closed for yellowcake mining. But now the country may be preparing to open its doors to junior uranium explorers and producers, which, in view of the Cigar Lake breakdown, would be a major step to ramping up production in the foreseeable future-and could provide some excellent investment opportunities. Below, senior researcher Chris Gilpin breaks down some key developments expected Down Under during the coming months..

Doug Casey, Casey Energy Speculator
April 29 - a Day to Watch for Uranium Investors
Australia is poised for a breakout in uranium production. The land down under hosts 36% of the world's reasonably assured uranium resources (recoverable at low cost)--more than any other country--and yet it accounts for only 23% of global output. But that picture could change drastically in the next few years.

The current opposition party in Canberra--the federal wing of the Australian Labour Party--could have the largest influence on the future of the uranium industry. Their leader, Kevin Rudd, supports a rethinking of Labour's opposition to uranium mining. The federal Labour conference takes place on April 27-29 and will be a pivotal event for Australian uranium politics.

Why? A federal election must occur in Australia sometime in the second half of 2007. Kevin Rudd is a popular figure, and polls show that Labour has pulled ahead of John Howard's ruling coalition for the first time in years. The last Morgan poll gives Labour 48% of the popular vote, while John Howard's coalition sits at 38%.

Labour holds the balance of power in each and every one of Australia's states and territories. Its regional governments' attitudes toward yellowcake vary. New South Wales and Victoria ban all uranium-related industrial activity, even exploration. Queensland and Western Australia straddle the fence, allowing uranium exploration but not uranium mining. Tasmania has no ban in place, but has never drawn interest from uranium explorers. Only South Australia and the Northern Territory (neighbors in the middle of the continent) have allowed uranium mining.

Here's why the April Labour conference could be a game-changer: Queensland's premier, Peter Beattie, says that his state will fall in line with the policy that reaches consensus at April's gathering, which could signal an immediate boon to companies working in that province.

The stakes are enormous. Because of past governmental disincentives, few of Australia's prospective uranium regions have been explored with up-to-date technology. There's big potential for a significant discovery in the Northern Territory, where, according to a November 2006 report by the Northern Territory Minerals Council, only 20% to 25% of the prospective rock units have been effectively explored.

Most likely this holds true for other regions of Australia as well. Today airborne electromagnetic surveys can yield useful data from ten times deeper into formations than they could in the 1970s. Many authorities, including the Uranium Information Centre and Geoscience Australia, believe that past exploration was superficial by today's standards and that there are several resources at depth waiting to be found.

A look at history makes it even more apparent how groundbreaking Labour's potential change of attitude could be. In 1984, the federal Labour government instituted the "three mines policy," which was intended to eventually end all uranium mining in Australia. The law stipulated that only the three uranium mines in production at the time would be given permits to export uranium: the Olympic Dam project (the world's largest uranium mine) in the state of South Australia, and the Ranger and Nabarlek mines in the Northern Territory. Provisional approvals for other would-be uranium mines were cancelled. Labour's notion was that when the three producing deposits had been exhausted, uranium mining in Australia would be finished for good. Exploration cratered, and today Australia’s known resources are little changed from what they were 20 years ago.

After John Howard's coalition government swept into power in 1996, it scrapped the three mines policy. But because state and territorial governments were all dominated by the Labour party, the industry still made little progress. In fact, the Nabarlek mine had already shut down in 1988, leaving only two mines in operation. In 2000, the Beverley mine in South Australia opened, bringing the number back up to three. And today there is the prospect that SXR Uranium One's Honeymoon project will become Australia's fourth uranium mine. SXR Uranium One received its export permit from the federal government in January of this year, an essential step for uranium production in a country that hosts no nuclear facilities.
With Labour threatening to win the 2007 federal election, that party's stance on uranium will be pivotal for Australian exploration companies and, indeed, for the global uranium market as a whole. This April's conference will provide crucial clues as to the shape of things ahead.

http://www.caseyresearch.com/learnMore.php?pubId=2&ppref=USI002BN0207A

The Importance of Cameco and Cigar Lake on Uranium Sentiment

2007-02-25T02:16:00.000-08:00

As the spot price of uranium continued a frenzied ascent to $85/lb this week, it has become apparent that at least, north of the border in Canada, uranium has become a hot button issue. Where uranium stock investing was just beginning to attract mainstream attention in 2006, scores of analysts and investors alike have jumped on its bandwagon this year.

An illustration of such is shown below, which is a graph of the total number of subscribers to my uranium stock blog. Also shown for comparison is a 1-year chart of $15.9 billion Cdn uranium giant Cameco Corporation (NYSE:CCJ TSE:CCO) and $1.1 billion Cdn upstart Energy Metals (NYSE:EMU TSE:EMC), one of several promising mid-tier uranium junior companies.

A number of observations worth noting include:

A broad market correction beginning May 2006 in both American and Canadian exchanges stalled momentum as speculative money went out of uranium; notice the flattish slope from May until the beginning of October in my subscription rate as people were less enthused after the market correction

Whereas Cameco was fairly resilient during this time, the uranium explorer Energy Metals experienced a much more severe pullback.

A dramatic turnaround occurred when Cameco announced the flooding of Cigar Lake on October 23rd. In a month my subscriber rate doubled from 300 to 600, with the steepness of the slope correlated to the price action of Energy Metals and inversely correlated with Cameco's stock.

After the announcement, there seems to be a period of "consolidation" where the market tried to digest the possibility that the mine that was to supply 10% of the world's uranium in the near future could be out commission for quite some time

As 2007 came into focus, investors continued to rally into uranium, seemingly anticipating that the upcoming announcement by Cameco in early March will confirm that Cigar Lake would not be producing for a number of years; thus, the favorable supply-demand imbalance would continue to be bullish.

It is important to note that Energy Metals is not the only junior uranium company to exhibit this type of stock pattern; one can take a look at Fronteer Development Group Inc. (FRG) and Uranerz Energy Corp. (URZ), as well as any number of companies listed on the Canadian exchanges (comprehensive list here) to confirm this point.

Cameco Corporation CEO on RoBTV

2007-02-20T23:39:00.000-08:00

RoBTV: Can Cameco Fix Cigar Lake?

Jerry Grandey, CEO, Cameco

Where Things Stands Now at Cigar Lake

We are now in Phase I of recovery, intercepting the collapsed area, putting concrete into tunnels trying to get effective seal, go on now for one month, maybe a bit longer..hopefully in few months pumping mine out

How Has It Changed Estimates for Coming Year

Remember Cigar was not in production but development..2007 no impact on objectives..mine was supposed to be in production in 2008. In March we will let people know when it will likely start production and the added cost that will be incurred in the cleanup exercise

Like it or not, the coming announcement of Cameco is anticipated by all, mostly because, in my opinion, investor sentiment is key in this speculative phase of the uranium investing cycle.

As liquidity continues to pour into TSX Venture and uranium stocks in general--bulled by a new Sprott report--some have begin to question valuations. In an honest moment, I do worry that market psychology (greed) during these times often displace logic and analysis; case in point, I can make much stronger cases for some of the beat-up gold microcaps than their uranium counterparts. Be that as it may, a keen eye on the broader market and a smidgeon of self-discipline may be the saving graces in this ever-increasingly volatile uranium investing world!

Uranium Stock Profile: ENERGY FUELS (CVE:EFR)

2007-02-18T21:48:00.000-08:00

ENERGY FUELS (CVE:EFR)

Energy Fuels Inc. is a Toronto-based mineral exploration and development company with uranium and vanadium projects located in the States of Colorado, Utah and Arizona, through its wholly-owned Colorado subsidiary Energy Fuels Resources Corporation, and with gold, base metals and platinum group properties located in Newfoundland and Quebec and the Roberts property in Northern Ontario, which is prospective for uranium.

It is also a uranium junior that is on the cusp of production visibility, but needs to clear up several outstanding issues. The company was profiled by Lou Shizas a few weeks ago on RoBTV. Following is a summary of Schizas, with my own commentary mixed in:

Lou Schizas, equities analyst, Report on Business Television

On Properties
Yes they "may" begin production on some properties, mine in Colorado, they plan 2-3 hundred tons/day, existing mine site that they rehabiliting..they do have drilling permits in place in 2007 on that property so they want to extend that mineralization, prove more deposits..they also have other preexisting minesite, "could" begin in 2007, spend $2 million for rehabilitation..and the Tenderfoot plan, 100 tons/day, early-mid 2008

I think realistically, 2007 production is out of the question, although any uranium production by 2008 would force many people to reevaluate this company; still, I agree with the emphasis on "may" and "could" from Lou because there is still much work to be done.

On Stock Chart
I see vertical = stick --> pennant, usually when you work this out, break to the upside..it is little bit long in the pennant formation but it is definitely something to look at overall..I think drill results and operating environment will be catch-all..if you can find some support at these particular levels, it has been a great wealth generator..now we have to see them perform..

The flag in a pennant formation does not last 3+ months, as has been the case for EFR, although the stock does look to be forming a symmetrical triangle and has hit its Fibronacci retracement. I would favor a continuation of the uptrend for EFR, but one of major current issues that the company has to deal with is to file its delayed financial statements; the gaffe was blamed on the increase in business activity of its wholly-owned U.S. subsidiary during the Company's fourth quarter for the financial year ended September 30, 2006. Investor uncertainty around this issue certainly seems to be one of the factors preventing Energy Fuels from taking another run up and expanding on its $170 million market cap.

Overall, an intruiging stock, certainly worth following up on..