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Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Filtering by Tag: Uranium

Energy Bull Market Presentation

Here is a slideshare of a presentation I gave in Vancouver recently. You can fast forward the slides but the audio track won't be synchronized (also there is some "dead air" at the beginning but if you're patient you'll hear me eventually). I know we're not currently in an energy bull market, but the seeds of one are being sown as we speak. Companies are being acquired at nice premiums to current levels so people are starting to see value.

Uranium Deposits

Uranium stocks were sorely beaten up before the broad market crash. It looks like the selling was overdone as we saw some major bounces in uranium companies over the Christmas holidays. The chart below (courtesy of Resource World) lists some of the larger un-mined uranium deposits in the world. The price per pound in the ground on these deposits ranges from the $0.10 to $10 range. Clearly not all uranium deposits are valued equally.

Non Producing Uranium Deposits

I'd like to revisit my pre-Christmas post Why Buy Stocks?

I've summarized your comments.

I am sure that uranium stocks were the last things on people's minds while reading the article (mine included). However, the benefit of hindsight, I'm pretty sure the people who bought uranium stocks last week are in favor of their buying decisions. As an example, Denison Mines closed on Christmas Eve at $0.82 and closed last Friday at $2.10. I've written about uranium companies in my blog, but I usually don't get into too much detail. I try to save that for my email list and newsletter subscribers.

It is challenging to find quality companies as there are literally hundreds of uranium companies around. In a tough market, it pays to be picky. In my latest report, I've created a portfolio of 7 uranium companies that I believe will survive the market downturn and thrive in the coming years.

In addition, I've uncovered a company run buy some of Canada's Stock Market Superstars. The company is trading below book value (which is mostly cash at the moment), yet the group has one of the best long term investing track records in Canada. They've been quiet about their activities due to regulatory requirements but won't be a secret for much longer.

My paying newsletter subscribers were sent this report Sunday night. I'm offering you the same report for only $45 so you can get up to speed on some new opportunities in 2009.

Click here to purchase the report



Do You Think Uranium is a Good Buy Right Now?

I get lots of emails from my newsletter subscribers - here is my response to the question "Do you think uranium is a good buy right now?"

I believe uranium prices will increase and that should be good for the higher quality uranium stocks. Cameco is having lots of delays in getting its Cigar Lake Mine de-watered and it was on track to be producing 10% of the world's uranium. Between rising construction costs and the "normal" unforeseen challenges of building mines it looks like most uranium supply estimates are optimistic as very few projects are completed on time and very few operating mines operate at nameplate capacity. Also the current spot price of uranium is close to the cost of production which diminishes the efforts of companies to bring new projects online.

Uranium demand is projected to rise based on the number of nuclear power plants scheduled for construction. This link shows the long term uranium spot price. If it starts to move up there will be more interest in the sector. Uranium prices corrected back in July, 2007 so there isn't any froth in the current uranium price.

Right now, Hathor Exploration Ltd. (HAT.V) is one of the few movers and shakers in the uranium space as they are drilling up an interesting discovery in the Athabasca Basin. For every Hathor-like success story there are a few hundred failures as the quick run-up in uranium prices led to the formation of 100's of public uranium companies, most being run by people who were getting lucrative "on the job training" as there were very few experienced uranium geologists around.

An investment vehicle that approximates movement in the price of uranium is the Uranium Participation Corporation (TSX:U) which is an investment holding company which invests substantially all of its assets in uranium, either in the form of uranium oxide in concentrates ("U3O8") or uranium hexafluoride ("UF6"), with the primary investment objective of achieving appreciation in the value of its uranium holdings. The objective of the Corporation is to provide an investment alternative for investors interested in holding uranium.