SAN FRANCISCO – It’s the USA baseball World Series, so this is the land of the Giants in the city across the bay from where we live.
Uranium stocks – some of them anyway – are on a giant tear this autumn. One of them is reporting headline grades in Saskatchewan’s Athabasca Basin that are world serious – as much as 87 percent U308 in one interval.
“With the world close to having more demand for oil than it can produce, there almost certainly has to be a bigger role for nuclear power going forward, especially in countries that are not as over-regulated as the U.S. has become,” Gene Arensberg, an aggressive uranium investor and newsletter writer of Got Gold Report, tells me.
Worldwide, more than 50 nuke plants are under construction. At least 20 of those are in China.
For this Stockhouse audience, I will skip the big-view rationale on why uranium, seemingly so plentiful on our planet, is powering up again after a multi-year slumber. I also will skip those prospectors that have seen their projects deliver world serious grades and scale; their shares this month and last month have gone radioactive. (I own shares of the one referenced above … but will not name it here as its stock has risen markedly this autumn.)
So what’s still cheap, seemingly below fair value, among uranium prospectors looking for their U308 – which just rose above $50 per pound?
Blue Sky Uranium (TSX: V.BSK, Stock Forum) the other day experienced huge trading volume on its Canada-traded shares. The company is digging in Argentina and has a miniscule market capitalization: less than $20 million Canadian. Copper, silver and geothermal businessman Ross Beaty of Vancouver, Canada, is an investor.
Strathmore Minerals (TSX: V.STM, Stock Forum) is less than $100 million in market cap and has projects in New Mexico and Wyoming.
Western Uranium (TSX: V.WUC, Stock Forum) is less than $100 million in market cap but has its shovels in a few metal pies and a few locations, including New Mexico, Nevada and South America. I’ve met Pamela Klessig, the CEO. Her company also owns a stake in Nevada developer and sister company Western Lithium (TSX: V.WLC, Stock Forum).
Fission Energy (TSX: V.FIS, Stock Forum) is tiny and active in the high-grade Athabasca Basin up there in Canada. Whether it becomes radioactive remains to be assayed.
Way off the scale of uranium hopefuls that sell for below what might be seen as fair value: Witwatersrand Consolidated Gold (TSX: T.WGR, Stock Forum), a South Africa company that controls vast swaths of gold and uranium prospects in several of that nation’s richest and deepest basins.
I own none of these companies’ shares except the one cited at the top. Like many asset managers at aggressive houses this summer and autumn, I believe uranium (and geothermal) companies will benefit from high-priced oil.
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THOM CALANDRA of Ticker Trax helps his audience find value in a quagmire of investment choices. Thom was founding editor of MarketWatch, CBS MarketWatch and FT MarketWatch. He was the voice of Thom Calandra's StockWatch and The Calandra Report. Thom has been covering life-sciences and natural resources since 1988.
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