Back in 2005, just about any stock that had the least bit of exposure to uranium saw its share price rise sharply. Gains of 500%, 1,000% or more were not uncommon. Then in the summer of 2007, most crashed and burned. Even the “Original Uranium Bug” was squashed (but has since been “Born Again” as a rare earth bug now). Most of those former fliers will never see the light of day again. Only a handful will earn their wings. Strathmore Minerals Corp. (STM-TSX-V $.67) appears to be one of them.
I could write a long summary of why I believe STM is set to separate itself from the “also-rans” but I’ll let you review this presentation for all the nitty-gritty details. I’m going to cut to the chase because I think time is very short before STM gets it diploma.
The proposed Pine Tree-Reno Creek sale to Bayswater Uranium Corporation is in my biased but honest opinion, the liftoff for STM with significant producer as its destination. Such a sale is worth about $.40 a share. This sale would provide a wealth of current working capital as the company moves closer to becoming a real producer on its Roca Honda project.
Roca Honda is a company maker. It has an excellent cockpit crew. CEO David Miller is a renowned mining expert that has delivered with AREVA. John DeJoia and Juan Velasquez are perhaps among the top permitting experts in the USA. The permitting application for Roca Honda is expected to be submitted shortly. If successful, Roca Honda would be one of the largest new uranium mines in the USA in nearly 30 years. The fact that STM has been under budget and on track in now year 3 of a 6 year permitting process is a sign of the crew handling operations.
There are several other assets and reasons to want to board this flight including the belief the company can continue to monetize other non-core assets and as a Canadian listed company operating in the USA, a lower U.S. dollar has positive cash flow possibilities in the future.
I’ve been extremely selective in my process of getting back into uranium plays. As noted earlier, many of them IMHO have been grounded for life. I believe STM is on the verge of lift off that can put many miles between it and the also-rans.
Ahem…
Fri Oct 9, 2009
Strathmore Retains Peter Grandich as Investor Relations Consultant
STRATHMORE MINERALS CORP. (”Strathmore”) is pleased to announce that it has entered into an agreement to engage Mr. Peter Grandich as an investor relations consultant. Mr. Grandich will be paid $1,500 per month on a month to month basis, and has been granted options to purchase 100,000 common shares at $.55 per share in accordance with the policies of the TSX Venture Exchange for a period of 2 years beginning October 5, 2009.
While we are on the topics of uranium and Mr. Nadler, let’s leave Mr. Nadler behind. As Marie Curie (physicist and chemist, and a pioneer in the field of radioactivity) once said, and I’m paraphrasing a litte, ‘ People need to think more about ideas, and less about other people.’
Peter,
Would you care to post a list of those you think are “grounded for good”? Some of us may be holding with hope and should be selling and putting what money it generates into something that has a chance.
Unfortunately, it seems as soon as someone decides to sell a dog it becomes a greyhound, so it’s nice to get some guidance (even though no guarantee!).
Tax selling will start shortly and we want to beat that crowd.
Thanks,
Roger.
DueDillinger,
Are you trying to make a point (re: Ahem…) ?
We know he’s paid to promote them; as a Strathmore shareholder I hope he promotes the heck out of them and is spectacularly successful.
If you don’t trust him to be honest (re: “biased but honest opinion”), then don’t read the blog.
If I misunderstood your intend, I apologize.
Regards,
Roger.
DueDillinger was clearly trying to imply Grandich was somehow not disclosing this fact. Too bad he’s like so many others who post here without the benefit of reading and knowing everything they can about Grandich. If he did, he would’ve known Grandich dislclosed his relationship right up front last week when he was hired http://grandich.agoracom.com/2009/10/strathmore-minerals-corp-back-on-board/ He also immediately put it in his disclaimer.
Chill Roger. I like Peter and have been following his market explorations for three decades. Tempus fugetaboutit.
Blogs are a relatively new medium and the disclosure rules are not clear. If Peter’s commentary had been a press release, disclosure of compensation within the piece would have been required. A casual reader may not take the time to click on the external link to find Peter’s quite proper disclosure. Indeed, those who use an RSS feed-reader wouldn’t find it at all.
I believe (and have suggested to the SEC) that disclosure of paid promotion should be linked in any communication.
And for the record, I bought some Strathmore shares this morning.
Speaking of uranium…this is interesting on development of small nuclear batteries…..
http://news.bbc.co.uk/2/hi/technology/8297934.stm
Peter
Will please compare CXZ to STM and give your thoughts some of us can’t buy every stock you mention.
Thanks
Be careful Roger DueDillinger is one of those self-appointed authorities who without a mirror have trouble getting through a day.
Susan…art on Gold stock trades re Denison
http://goldstocktrades.wordpress.com/
WOW ! Peter that is a real kick in the teeth for James Dines , maybe the two of you should get together. Just to balance things his first Rare Earth pick , Quest Uranium, is up 900% since he picked it and all his others are showing significant increases. There are many other stockpickers now jumping on the bandwagon
Dine Reader – I don’t think Petey was going after Dines. I think he was pointing to how crazy things became in the uranium plays. Petey has expressed his guilt in the past as part of it. In fairness to Petey, Dines gloated for months about his uranium skills but then failed to warn his readers to sell before it all came crashing down. Most readers lost money.
DueDillinger,
I am plenty chilled, as my post indicated, looking for clarification. Glad to have you on board with Strathmore.
Blogs aren’t the best medium (IMHO) for all of this, and anyone who reads one blog post and invests based on that deserves to lose his/her money (again, IMHO).
As a one time stock broker, notice that the SEC does not require the broker to explain to his client how much he/she makes when the investor succumbs to one of his reco’s – especially with new issues or special products.
The SEC has failed miserably, so I would prefer they keep their mits out of blogs. The FTC just made some threatening, yet vague, regulations with regard to the internet; all we need now is more government TLA’s (three letter acronyms) getting involved.
——–
Regarding Rare Earth:
Please be careful, everyone, I think there are more stocks there with nothing actually behind them than there was with Uranium 3 years ago.
Regards,
Roger.
Thanks, Roger. Stock blogs are really just an extension of the old stock message boards, only more fragmented. I hear you wrt the SEC’s enforcement failures, but still believe that more disclosure is better than less. A broker making a recommendation to a client is different than a paid promotional consultant making public statements in an open medium. I’m not advocating the kind of idiotic ‘fairness’ that the fools in DC would impose on media (including the internet); rather I just would like to know whether someone making a ‘recommendation’ has been compensated.
Your caveat regarding the rare earth markets is sage advice.
More on the small nuclear battery….if this ever comes to market I’d sure like to get a hold of shares in whatever co. develops it….
http://news.cnet.com/8301-17938_105-10372233-1.html
I challenge Duedillinger and anyone to show me someone who does more full disclosure than Mr. Peter Grandich. I can show you tons who don’t come close or even worse. Move on or else it’s a fair assumption your posts have something more than general information desires.
tgb/tko very firm this am even on lower copper….a break of 2.86 can $ in next few sessions may prove interesting….would love to see this break up and out of the cons. pattern
missed this art. on hat..hathor
By: Liezel Hill
26th September 2009
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TORONTO (miningweekly.com) – Hathor Exploration, which is exploring for uranium in Saskatchewan, expects to have some serious buyers knocking on its door, as it firms up resources at its project and as utilities around the world rush to secure future supplies of the nuclear fuel, spokesperson Tony Nunziata said on Saturday.
The company has already signed “more than ten” confidentiality agreements, mostly with Asian companies, he said in an interview at the Toronto Resource Investment conference.
Nunziata said he would not be surprised if the firm was acquired at a premium as early as next year.
“We’ve been at it now for two years. And with our winter exploration programme coming up, if we do connect the dots here, I can’t see how someone can’t come after us, especially with the relationships that we’ve been building with these Chinese groups.”
Hathor’s Midwest Northeast property, in Saskatchewan, has Areva and Cameco as very close neighbours, including the McClean Lake mill, which Areva owns with Denison Mines and Ourd Canada, and which is currently underutilised because it was to have been treating ore from Cameco’s delayed Cigar Lake project.
One scenario is that either Areva or Cameco could team up with a Chinese partner to make the acquisition.
“For us, the plan is to build the size of the prize and sell it hopefully at a premium,” Nunziata said.
“We’ve gone to Asia several times now and we are going back next month once we come up with this initial resource estimate from our drilling.”
“We’ve got some a high interest level out of some of the big power utility companies…they are definitely watching us closely,” he said.
Hathor has several sets of news out in the next month or so, including drill results and a resource estimate from its Roughrider zone, as well as initial data from a new zone about 200 m away.
“The thinking is that this new zone could be an extension of the Roughrider zone, and if it is, that will obviously be huge for the company,” he said.
Edited by: Liezel Hill
No point in picking a fight that isn’t there, Ed, and no need to belabor this topic. I’m not ‘bashing’ Peter’s disclosures at all (which are quite clear and thorough on the site), but rather suggesting and expressing a preference that he (and other paid promoters) provide a link on individual posts to the disclosure page so that casual and RSS readers can access the information conveniently.
Moving on…
I trust the old-timers here have seen Mickey Fulp’s informative piece from last March:
http://www.321energy.com/editorials/fulp/fulp031109.html
From Gold Prices
Following on from our recent post regarding the US Dollar when we wrote this:
Another nail in the dollars coffin came in the form of a report by Robert Fisk of the UK newspaper The Independent, entitled; The demise of the dollar, which includes this rather devastating snippet:
In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading.
Further support for this notion arrived today when we received this missive from Jim Sinclair this morning referring to an article on the BBC:
Now here is an absolute indication that China and Russia will NOT be using dollars in energy settlements between countries.
This is the real beginning of the rumored trend in hard FACT. It will definitely spread now.
Russia is hoping to sign deals worth $5.5bn (£3.5bn) with China as Prime Minister Vladimir Putin visits Beijing.
The deals may lead to Russia selling more oil and gas to China – the world’s second-biggest energy user.
About 30 contracts in infrastructure, energy, mining, transportation and telecoms have been lined up.
Russia is keen to bolster its economy, which President Dmitry Medvedev has said will decline by 7.5% in 2009 – far worse than earlier predicted.
Currency ambition
Trade between Russia and China has risen from less than $10bn to more than $50bn annually over the past six years.
The heart of the relationship is Beijing’s thirst for Russian energy – oil and gas make up more than half of Russian exports to China.
Russia and China eye $5.5bn deals
A gas pipeline from Russia
Oil and gas are the Russian commodities that China wants most
Russia is hoping to sign deals worth $5.5bn (£3.5bn) with China as Prime Minister Vladimir Putin visits Beijing.
The deals may lead to Russia selling more oil and gas to China – the world’s second-biggest energy user.
About 30 contracts in infrastructure, energy, mining, transportation and telecoms have been lined up.
Russia is keen to bolster its economy, which President Dmitry Medvedev has said will decline by 7.5% in 2009 – far worse than earlier predicted.
Currency ambition
Trade between Russia and China has risen from less than $10bn to more than $50bn annually over the past six years.
The heart of the relationship is Beijing’s thirst for Russian energy – oil and gas make up more than half of Russian exports to China.
Earlier this year, Moscow signed a $25bn agreement to help fund a pipeline to supply oil from Siberia to China. In exchange, China was guaranteed a 20-year supply of crude oil.
However, Moscow is also keen to boost exports of machinery, especially aviation equipment and nuclear power plants – though analysts say that China’s appetite for Russian goods other than energy and raw materials is limited.
The countries hope to expand the amount of business they do in their own currencies, rather than the US dollar. However, currently only about 1% of their dealings involve roubles or yuan.
I’m wondering how Bayswater, which even after todays spike is going to finace a 30 million dollar purchase of this property? More BAY shares to come to the tune of 160 million + and who’s going to buy them?
Due – Do us all a favor and take a long walk on a very short pier.
Wow. You people get so wound up. I remember Peter (and others) saying this is gambling. People who follow Dines lost lots of money. It was a gamble. People have also made tonnes of money following Dine’s cryptic comments. That’s a gamble, too. I like what Peter says and I ‘ll be buying some Strathore tomorrow with some losers from my Dinesy portfolio. I like listening to most of you on this comment section, too. But it’s all a gamble, folks!
And to be honest, I’m more likely to follow Peter or Dines any day of the week than anyone who writes comments in a blog such as this one.
Good luck, Y’all!
Forsys Metals has an estimated 20 million lbs more uranium in situ than Strathmore
For anyone interested in an ongoing discussion of Strathmore and related issues, please visit the hub here at Agoracom:
http://agoracom.com/ir/Strathmore
It would be good to have some company in there…
Stephen – Bayswater is talking to potential financing sources now. It seems likely that a share consolidation may be a part of whatever financing deal is secured. They have until the end of this month to get a commitment in place, or STM can shop the property.