According to Matthew Smith of TheInvestar.com chart-tracking service, “The Australian Index seems to be forming a base, and at this point one cannot determine whether it will move down or is getting ready to move higher.” Smith pointed out, “We are now in uncharted territory.”
Smith, who is not a registered investment advisor, suggested, “I would focus on companies with deposits or projects in South Australia or the Northern Territory. The local government in South Africa is very receptive to uranium mining and exploration, and the Northern Territory is governed by the Federal Government. South Australia is going to fast track something like 100 projects now (exploration stage).”
He admitted, when referring to companies hoping to develop uranium properties in other states, “Queensland and Western Australia scare me at this point.”
Of specific Australian stocks, Smith favors Compass Resources (CMR.AX), PepinNini Minerals (PNN.AX), and Curanoma Energy Limited (CUY.AX).
“Compass Resources could provide investors an interesting play in the Northern Territory as they are looking into spinning out their uranium properties into a new company,” Smith told StockInterview. “They actually have a deposit with 14.5 million pounds at a cut-off grade of 0.5lbs/ton U3O8 in the Northern Territory. Theoretically, they could be one of the first to bring on a new project.”
Smith remained committed to PepinNini Minerals. “This company could have the fifth mine after Uranium One (TSX: SXR) starts their Honeymoon Project. PepinNini could have some downward pressure in the coming weeks as 36 million shares came available for sale by the company’s executive.”
Rounding out his top Australian favorites, Smith said of Curanoma, “It has had a really nice run-up and has been one of the top performers in the Australian Index.” Smith also invests in both Canadian and Australian uranium stocks found in his indexes.
(Editor’s Note: StockInterview.com has no relationship with either TradeTech or TheInvestar.com. Neither TradeTech nor StockInterview.com, or their employees, invest in, or trade, uranium stocks.)
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