Ed. note: Here’s the latest installment from longtime reader and junior miner man Myron Martin. He has agreed to our trading restrictions, and we have not reviewed, approved or screened his stocks or ideas, and the opinions he expresses are solely his own. Many of the stocks Myron covers are microcap “penny stocks” that can move dramatically with or without fundamental reasons, so please be cautious. Myron’s past commentaries can be seen here.
Following up on my previous column contrasting “speculative” explorers with actual producers or near producers of uranium, you will probably see, by the time you have fully investigated this follow-up report, why I was so ticked off about the efforts of Angel Publishing in their recent teaser ad. They were attempting to sell a newsletter for $500 by passing off an early-stage explorer as a solution to a fear-mongering “lights out” threat due to a potential shortage of uranium. There are companies that are positioned to fill whatever “gap in supply” may actually materialize. Better to follow the investment strategy of the richest man in Asia, and super-star investors like Rick Rule. If that makes more sense to you, then reading this news release will reinforce your decision to invest in the number one pick in the last column, or maybe push you over the edge if you are still sitting on the fence.
Realizing my audience is probably mostly American, there is one company I did not include in my original uranium column because I wanted to wait until it got its listing on the NYSE Exchange: Energy Fuels (EFR.TO UUUU) C$5.95, $5.59. Here is the announcement and a short profile of the company.
Energy Fuels produces 25% of the U.S. uranium needs, which is obviously a big plus. The second major consideration for me is the fact that they acquired an old and well-established firm, Strathmore Minerals (which I also had shares in), that complements their vanadium production, which is rapidly becoming a strategic metal with supply deficits. Third, they own the White Mesa Mill in Utah, the only permitted uranium/vanadium mill in all of the U.S., which is currently the world’s largest nuclear power market. The mill has processed as high as 4.5 million pounds a year (currently 1.5 million), and Energy Fuels has contracts with three major utilities for another two to four years, at prices of $58.42 per pound in 2014, a 62% premium to current spot ...