Toro Energy Attracting a LOT of Attention, but Black Range...

Toro Energy Attracting a LOT of Attention, but Black Range Minerals a MUCH Better Choice!

Thursday, April 11, 2013 · Posted in Uranium, Uranium Companies · by Peter Epstein

Toro Energy could be in production as soon as 2015. Several partners are said to be interested in farm-ins or joint ventures. Why the excitement over a land-locked asset? Toro is 1,000 kms from west or south coast of Australia. It’s a long way from Perth to China! About 9,000 kms actually. Toro Energy’s expected costs are advertised at about $40 per lb. This is not particularly cheap.

Instead, investors should look at Austalian-listed Black Range Minerals, (BLR.AX), (BLR:ASX). Black Range Minerals trades at one-tenth the valuation as measured by EV/lbs of uranium resource. Black Range has 90 million lbs of resource vs 60 million for Toro.

Black Range also has a higher average grade. More importantly, Black Range’s assets are not stranded in the middle of nowhere, they’re in Colorado. In addition to highly prospective U.S. uranium assets, Black Range has a 50/50 JV with a private company named Ablation Technologies, LLC. This JV could be worth a multiple of Black Range’s EV. More about Black Range in coming weeks.