This share was slated as worthless. The company only but produced good news recently. The share price has started to move. Is it simply the noise" around Fukushima which is filtering out of the market now? Is it the Chinese who simply continue to build nuclear power plants irrespective of last year's scare? SA is also planning a second facility.Anybody care to share?
This is a technically well run company with some excellent assets, and in spite of the negative sentiment resulting from Fukushima, the near-future demand for uranium is enormous as numerous new reactors come on line around the world. Running a reactor doesn't require a huge amount of fuel, but the initial load is substantial. Furthermore, the use of MOX fuel at Fukushima has pushed power utilities away from the use of military grade recycled fuel mixes, further increasing the demand for primary production. Quietly, and in the absence of another accident, I'd be very optimistic for U stocks.
ANG might be the biggest supplier sure, are they the lowest cost producer? I suppose there is room for smaller players. UUU is releasing results on 5 March. Haven't seen a profit warning....perhaps it is fully priced now. The analysts on the Toronto exchange like this share though.
You would take the COST OF PRODUCTION CURVE position of their primary product (GOLD adjusted equivalent ounces for ANG) and simply raise it by the TOTAL (FIXED + MARGINAL) production costs specific to the by-product (U)(which should be low to qualify as a by-product in the first place.) Since this is about marginal/break-even analysis, you can compare these curves directly for investment return purposes. For safety of investment analysis the curves are fairly industry specific. You could strip industry specific inflation factors from the chart in order to isolate the common cost profiles. That's a bit beyond us casual investors though. The point is - while a by-product might carry a flat nominal cost "curve" with seemingly low marginal cost, it might really fall on a very steep primary curve with a high (relative to industry norms) marginal cost to contribution ratio; perhaps even negative.