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First Uranium Corporation T.FIU



TSX:FIU - Post by User

Post by elmlon Sep 10, 2011 11:21am
239 Views
Post# 19029278

just for your info. regarding FIU

just for your info. regarding FIU

hereunder is some comment I just found from the internet:
from Edward Sterck:
https://au.ibtimes.com/articles/211342/20110910/uranium-nuclear.htm
"

ES: I'd like to mention First Uranium Corporation (FIU:TSX; FUM:JSE), which is now primarily a gold stock despite its name. It has had a pretty troubled history, and it definitely represents a higher risk-and potentially a higher return investment. The problems that it has encountered have been in relation to its underground operation, which has been fairly technically challenged. The company is struggling to get it up to the production rate that will alleviate problems with grade control. If it achieves that production rate, it should bring costs down to reasonable levels. It's also had a couple of issues at its Mine Waste Solutions tailings retreatment facility, which has encountered some regulatory issues that the company has now overcome.

Looking ahead, I expect it to eventually get to the production rates that the company is guiding toward. It's just going to be a fairly long and potentially painful process. However, being primarily a gold company, I think we can ultimately see gold production on the order of 400,000 ounces a year five or six years out, which makes it comparable to some of the mid-cap gold companies.

TER: First Uranium's earnings/share are about negative
.19 a share in 2011, but you project that to go up to positive
.05 per share in 2012. Is gold strictly to account for that?

ES: It's a combination. The gold price has obviously been very strong, but production has improved as well. Mine Waste Solutions is actually cash-flow and earnings positive. It's really just the Ezulwini Mine that's dragging earnings at the moment. Come the third and fourth quarter of the coming fiscal year, I expect things to be looking better at that operation. As always however, First Uranium remains a higher-risk investment and there are certainly some refinancing risks associated with some debt that is due in June of 2012.

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