breaking thru support, page-2

There was always going to be a long wait period, due to the wet season, between November and when the the Bahi North results are released in June. I'm very impressed with how well the Uranex sp has held up during this period given the lack of results. Mind you Uranex has been busy elsewhere with the capital raising, which gives Uranex ample funds for exploration. Uranex has also been busy acquiring additional tenements in Tanzania.

Imo now that we are getting close to the business end of Bahi North, Mkuju and Thatcher Soak the sp will stay in the $1.80 to $2 band until the first batch of news hits. Then as it has been trading sideways since early January 2007, it will be kaboom time as they say, the longer the sideways trend, the bigger the kaboom.

Of course the Uranex sp could even move up another level, say to $2.20 to $2.50, without news if uranium stocks in general rerate due to, for example, the Nymex uranium futures that start on 7th May.

The $EV/lb of uranium stocks with land in Australian is lower than Canada and the US due to the political impediments in Australia. Checkout the market capital of some uranium explorers in Canada and the US and you will be surprised. Somewhat similarly the $EV/lb of uranium exploration stocks in Africa is low due to the perceived sovereign risk. However, there are many foreign companies mining in Africa (how long has the Rossing uranium mine been operating for?) which suggests that the relatively low $EV/lb for uranium exploration stocks in African is artificially low. This can work to your advantage as you can buy into a stock when it finds uranium resources relatively cheaply, then with defined resources the risk is substantially lower, but the stock sp will rerate many times as the company gets closer to production.