my opinion, page-7

Hi Satori,

Here is an interview taken 12mths ago on where U could be heading.

http://www.stockinterview.com/stm-bambrough.html

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This is the part I like the most.

“For people who want to bring on new (nuclear) facilities and contract for it, it’s very difficult to do that,” said Bambrough. “You have to go to mines that are not even there yet in order to try and contract supply.” In this light, it appears the greatest opportunity will appear with the junior uranium companies, which obtained known uranium resources during the last down cycle, and whose operators abandoned such properties because of low prices. As Neff warned in his presentation, “Uranium prices have recently reversed a twenty year decline, apparently surprising many buyers and sellers.” Buyers will be combing the same company lists investors scan. Just as investors will be racing to find the best uranium juniors for investment purposes, utility buyers and uranium traders will be scrambling to identify which company could provide them with a long-term uranium supply.



How Can Investors Profit?

Bambrough recalled compiling a worldwide list, in 2003, of a mere 25 companies involving in uranium mining and exploration. “I cut the list down to around ten that looked to be promising,” said Bambrough. “I’d say that today there are still less than 30 uranium companies that present a good reward-to-risk ratio considering the massive move the sector has made.” Depending upon whose list you believe, the number of companies now mining or exploring for uranium stretches to about 200. The majority trade on either the Canadian or Australian stock exchanges.

So how do you separate the potential winners from the also-ran’s? “People in the industry sort of know who’s real and who’s not,” said Bambrough. “I think a lot of the pure exploration companies are more likely to fall on tough times.” Wyoming legislator, former IAEA consultant and president of Strathmore Resources, David Miller, said, “Most of the junior companies have acquired uranium exploration properties that have no historical resources and in fact, many have their projects in areas that have no history of uranium production.” Bambrough cautioned, “I think there will be a real separation between the have’s and the have-not’s, those who actually have uranium and economic deposits. A lot of exploration companies are more likely to fall on tough times. Those are the ones that will get hurt because they don’t have anything to fall back upon. They have to go to market to keep raising money to do the expensive drilling that needs to be done. It costs so much.” Miller added, “It will take exploration funds, good geology, and some luck to find new uranium deposits in these frontier areas. The success rate of each individual prospect will be far less than 1 in 100.”

What sort of companies has Sprott Asset Management invested in? Bambrough responded, “We have preferred to invest in companies that have acquired properties that were once owned and were actively being worked by majors at the end of the 70’s bull market.” He added, “The cost of uranium exploration is so large there is great value built into many of these properties. Specifically, millions of dollars worth of drilling work and data have been collected on some properties. In some cases, mining shafts have been built that only require rehabilitation at a fraction of the cost of starting fresh with a green fields project.” Another example of what he does and doesn’t like, “The guys that picked up stuff in the last year, when they saw the uranium boom, they just said, ‘I’m going to go grab some land.’ I have greater confidence in the guys that have been there for a longer period of time, bought things when they were being thrown away at the lows, and waiting for the uranium price to rise.”
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Thats only part of the interview.

Well at least thats one criteria that AEX have.
A mine with lots of data and previous drillholes.
The point is as long as they have a reasonable resource
and can prove the known resource as well as get it to the Jorc stage, marketing the product will be the next most important criteria.

If Jorc shows for AEx to be economical,
I know a few posters have mentioned about an eventual AIM listing due to Wallers connections.

However, the big market is on the TSX.

That I believe is where the real action will eventually take place.

Poms are more conservative than US investors.

As PDN continues its mining and selling of U, watch its price skyrocket further over the next few years.

Producers will be the real beneficiaries, not the unknown explorers who have nothing more than a pipedream.

Yanks are crazy.

They'll invest in anything with the letter "U" attached.

LOL!!!

Seriously, many of them know very little about investing in "U". Alot of them think BHP is going to suddenly provide all the extra U from Olympic Dam without realising it is still going to take at least another 5 years for Olympic Dam to be producing 15,000 tns a year. Alot of them think that BHP makes most of their money from U.

Anyway, have a read.

Cheers markco2