HT1,back in OCT ,in response to a thread on OZL(what to do with...

HT1,
back in OCT ,in response to a thread on OZL(what to do with the warchest)
22/10/10 post 5865396 on OZL forum I submitted a RCR on TOE.
(you need adobe to view it)

http://www.toroenergy.com.au/_literature_75344/RCR_Uraniu_Sector_Review_-_Sept_2010m

I still agree,but the landscape has shifted since 'JAPAN' and in my opinion TOE will benefit when investors/brokers sort the 'wheat from the chaff'.

points to consider;
uranium is not going away
2013 will be the crunch year for u308 prices
TOE's mission is for a reserve or +200mil/lbs,thru' acquisitions- they have added app'10m/lb in the past year,with cash in the bank and low valuations I would expect more tactical acquisitions,also higher reserves thru' exploration.
As for financing:once a reserve threshold is reached offtake agreements begin, even before that if your project economics stack up then bankers will have you on their radar,that's if you share my belief that uranium will be in the energy mix into the future.Have a read of the Bloomberg report posted today.
Having OZL on the register is good, it may deter a low priced spec bid.
RE:dilution--can't see TOE doing a spp for $300m for opex, they'll go for jv,offtake funding,or even big brother.
Finally,TOE being a major supplier--I don't see the significance.As long as you are a supplier at profit,look at- ERA...flooded,cigar lake ...flooded,OZL...deep and no infrastructure,BHP,well that's different,it's already a work in progress,it's low grade and they've got the ability to spread costs,but if you rob Peter to pay Paul ?