The following is an extract from Warwick Grigor's January Sector Analysis on Uraniun Producers/Potential Producers Mkt Cap 1/12/06 9,776 m Mkt Cap 26/01/07 12,248m Change percent+25 Change dollars $2,472m No of Co. 20
Advanced Explorers Mkt Cap 1/12/06 1,380m Mkt Cap 26/01/07 1,887m Change percent + 37 Change dollars 507m No of Co. 14
Grass Root Explorers Mkt Cap 1/12/06 1,612m Mkt Cap 26/01/07 1,817m Change percent+13% Change dollars 205m No of Co. 40
The table above provides clear evidence that uranium is the hottest sector in the market. In the space of only seven weeks the value of uranium stocks in Australia has jumped +25 percent, or 3.1bn to 16bn. This is the biggest mining boom to hit the Australian bourse since the nickel boom of the early 1970s .
When does it end? From our perspective there is no foreseeable end to the enthusiasm, though it will obviously have its fluctations. The main reasons why we expect it to continue are:
We are witnessing a world wide structual change to how we generate electricity, being driven by global warming and the need to preserve our planet.
There is no foreseeable supply response to a world wide shortage of uranium for a number of years.
We see strong similarities between gold in the 1980s and uranium in the new century;
Back in 1980 when the gold price peaked, there were only four listed gold producers in Australia, and there was a vacuum of knowledge about gold on the technical and analytical fronts. Then there was a great ten-year period for the sector after this, generating enormous growth in income, employment, share market and corporate activity.
Uranium is in exactly the same position now; with the main difference being that the uranium price has not yet peaked! We are looking forward to an exciting decade in the boom metal of the 21st century - uranium. Unquote
Any company that can fast track from being a explorer to a producer is obviously in the box seat in this environment. Australian uranium companies with leases in Australia have to be looking at a minimum of 3/5 years lead time because of the political scene, If BLR can prove up it's USA reserves, we should have some indication by the 1st and 2nd Qtr 2007, then it is in the position to change from "Grass roots explorer" (Warwicks description of BLR) to a "producer" in a very short time frame.
I am a long-term holder of BLR and have traded small parcels (while accummalating) of the stock since I first purchased them back in September at 4.8 c
I one of very many happy holders.
Walgert
BLR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
