Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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

6 Critical Money Making Rules