Invested in an explorer called A-CAP Resources (ASX:ACB) 2 weeks ago. Its the only Uranium stock I've bought into. Really like this one. Spent days researching it
Why I like it:
- Current JORC resource is 158m lb.. The chairman said recently that this may double in the next resource update which will be announced "early 2011". This will have a big impact on the shareprice when announced..
- Low extraction costs. Unlike other Uranium mines ACAP's resource is sitting in the top 70 metres. In Sep the chairman announced costs will be lower than $30/lb.. This is much cheaper than other producers. Uranium will be mined in open pits. Using radiometric sorting and heap leach extraction the costs will be low.
- There are roads, train lines and power supply right beside the resource.
- ACAP has only explored 20% of its tenements.. 80% to go. This could turn out to be one of the top undeveloped uranium resources in the world. It's already in top 20.
- Not taking into account the next resource upgrade, ACAP's uranium is currently valued at 58c /lb (rough back of beer mat calc). Similar explorers are valued at $2/lb. Uranium producers are valued at $10/lb..
- The company operates in a mining friendly country - Botswana.
- Likely to apply for mining license mid 2011
- Likely to start producing in 2012/2013
Like I said previously, I really like this one. This has the potential to give a big return. You've been warned !!!