RE: RE: RE: RE: RE: RE: Any Suggestions?<< ‘We’ll find someone who has a large resource that is uneconomictoday, but if you move the price up, it becomes quite economic.’ Iwould say Strathmore Minerals (TSX-V: STM). They have a large resourcealreadyidentified. In fact, they are acquiring properties all the timethatwere identified years and years ago. Yet, at $20/pound uranium,theyprobably don’t make any sense. But, at $40/pound uranium, theyare likely to make tremendous economic sense. Of course, the value oftheshares can almost – not go up exponentially – but they can go up alot. >>
Strathmore perfectly illustrates my point about the failure of the optionality plays. That Sprott interview was published in November 2004. As Sprott suggested might happen, the price of uranium surged from $20 then to $45 now, but STM shares fell from around $1.20 in 11/04 to $0.52 now.
If you're willing to invest in silver then have a look at SBR. It has a resource of over 1Bn ounces of silver, yet the stock is trading close to net cash on hand. Why so cheap? It's in SIberia so you combine the Russian country risk with the operational complexity of a remote location, extreme weather, and lack of infrastructure. In spite of those challenges, the project should be able to generate tremendous returns at $17 Ag. Has a great management team too.