The company has a big JORC (Joint Ore Reserves Committee) resource of 157 million pounds of uranium oxide and Chinese investors hold a stake. Habib says although ACB?s resource is low grade compared to its peers, the company is confident of increasing its resource to 300 million pounds of uranium oxide in 2011. ?With cash costs estimated at US$33 a pound and a projected mine life of between 20 and 30 years, ACB is one to watch in 2011,? he says. ?This may provide a solid investment opportunity for years.?
Watching the slow/low volume decline is a bit annoying at the moment. How much of the upgrade is priced in to date?
ACB Price at posting:
62.5¢ Sentiment: LT Buy Disclosure: Held
