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Read a great article today which made me want to purchase many more shares in AEE.

Positive aura: Brett Fraser of uranium exploration group Aura Energy speaks to Stockopedia
Thursday, Dec 09 2010 by Ben Hobson

http://www.stockopedia.co.uk/content/positive-aura-brett-fraser-of-uranium-exploration-group-aura-energy-speaks-to-stockopedia-51281/

The best reason to only buy uranium companies like AEE with large,economically viable resources is in the following quote from the article.

"There is a lot of uranium out there but if you have a look at who the major suppliers of uranium are, they?re still all the big companies. There are very few junior companies; in fact I would struggle to name one which supplies yellow cake to any major utility or reactor. If there are, then they are doing it via contracts secured by the likes of major mining companies. So what does that mean with regards to uranium? Well it?s not really a market based commodity, it?s a contract based commodity more than anything else. So we have a spot market but that means next to nothing. All the contracts that are in place are direct with the end user and they?re set at prices that enable that mine or project to run reasonably profitably. So it?s an interesting economic model.

I look at it like this, what you need to do is have a financially viable project and it?s got to be of a size that a reactor builder or a mining company can supply for the life of a reactor. It simpler for the reactor operator to secure supply from one or two sources rather than having to race round, because the cost of operation of a reactor, the uranium fuel side of it, is only 5% to 7% of the operating cost. So, again, I come back to the fact that it is not a market based commodity, it?s contract-based. So a company will try to ensure it has projects that are of a size, nature and consistency over a period of time for a reactor or utility to secure supply.

What we have, in Sweden, will be a life-of-reactor resource for one or two reactors if we develop the 1bn-plus pounds that we believe sits there. We have already announced 291m pounds but we?re confident there is well over 1bn pounds and that?s potentially a 100 year resource...."
and
"...With Aura we are sitting on, I think, what will potentially be the second largest uranium deposit in the world ? a polymetallic project in Sweden. In its own right, when we look at what?s going on with Talvivaara Mining Co Ltd (LON:TALV) and their production in Finland, we can hopefully mimic their processing route and develop a very profitable project out of Sweden...."

Regards
Gisy