Russell Fryer: Fund Manager Talks Favorite Uranium Stocks And Why Sector Is Ready To Move
CK: While we are on Energy Fuels and the White Mesa mill let us touch on Western Uranium, which is a company most investors are not aware of, but one that you find quite compelling. In fact, you are on the Board of Western Uranium. What can you tell people about that company?
RF: Well, they just came out with an announcement this morning. It just seemed that the CEO of Western Uranium, George Glasier, was the previous CEO of Energy Fuels. George had taken over some of Energy Fuels' assets which were actually in production, Brownfield's mines, previously owned by Denison. But one of the two key, I guess, advantages that Western Uranium has is a) they have the Pinon Ridge mill license that George Glasier plans on building; got to be the newest mill in the United States. If you think about, again, my thesis of the advantage of mill ownership and mill license ownership it could also be the 2016 version of an automobile versus some of the older mills that were built in the 1980s. It would be more efficient. Obviously, it creates jobs. I think that is a real win for Western Uranium.
Second point is that they have the Ablation Mining Technology which is a proprietary mining technology that Western Uranium will employ in the ground and that should reduce the cost such that Western Uranium should probably be if not the lowest cost is called the lowest quartile producer in the world and that includes the Kazakhs and the Uzbeks. George Glasier has a real winning formula there. Unfortunately, the market does not know much about it, but I am sure they will hear more about it as Western Uranium grows.
The other point about it is Western Uranium has 100 million pounds of chalk and 43101 pounds of uranium, second largest in-situ holder in the United States, and 34 million pounds of vanadium. Again, if you think about Energy Fuels and Western Uranium's advantage over some of their competitors, they got vanadium co-credit. Both those costs should drop the all-in sustaining cost as the vanadium price creeps higher. Vanadium over the last month or two is up 30% so I am very, very bullish on Western Uranium.
http://seekingalpha.com/article/393...lks-favorite-uranium-stocks-sector-ready-move
