I have referred to the escapist role of Beattie (Queensland) and the Aussie Greenies who don't really care about the world warming up because of the use of coal in the thermal plants.
Recognizing that mining of Uranium should be allowed everywhere, takes away one of their supports and they won't allow that.
Meanwhile, the Canadian Greenies love this as it means less competition to Canadian exports of uranium.
The European Greenies don't like coal stations and prefer nuclear. This puts the irresponsible Aussie Greenie offside.
The problem is that once foreigners or others move in to take over a Uranium company, the price will be too low, particularly in Queensland thanks to the shortsighted attitude of interest groups.
Australia hence looses out on firm values as can be expected overseas even if there is a big premium on these Foreigners' Uranium assets.
SMM with expected In situ value of some 150 mill lbs of Uranium to come IMHO is a treasure and should not suffer regardless of the self serving attitudes of others.
The Aussie Govt should step up and apply the necessary regulations as it can by law.
Till then, Uranium assets could depart cheaper than desired.
A very good Research report puts the SMM NPV at $3.65 based on a permanent US$40 Uranium price. However, U is already US$45.50 and is rising, meaning that NPV is too conservative.
Meanwhile, interests smell that sooner or later approval to mine in Queensland could be given and are moving in. This pressure is bound to increase.
I do have a solid exposure to SMM because I feel that it is hopelessly underpriced ($1.49).
Waiting for developments,
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
SMM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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