Friday, August 04, 2006

Uranium Spec Play

Another hype campaign is beginning from Agora, this time on a "$1.30 Australian uranium play." Details below. But what I like about this one is that it is also a favorite of Jim Dines, who has been all over uranium stocks this past year or two. The stock appears to be Summit Resources. It's symbol is SMM on the Australian Exchange, and SRCSF on the OTC Exchange. I had to buy it by calling Schwab's Global Exchange Desk ($1.25), but Ilene was able to buy it electronically through Ameritrade ($1.26).

Hype email from Agora:

As you know, oil stocks have been on a run for the past five years as
the price of oil has doubled. But most people - especially those that don't
live in Australia - have missed the even bigger run in uranium. Theprice of uranium has gone up 1,400%.I've found one tiny $1.30 Australian company controlling more than $4 billion worth of uranium. This stock could likely bring quadruple-digit
gains to early investors. I suggest you read on for more information.

Christian DeHaemer
Founder, Red Zone Network

-75 Million Pounds of Uranium Lying Underneath an Australian

-$4 Billion Worth of Nuclear Energy Waiting to be Sold...

-1.3 Billion Chinese Citizens Desperate for Cheap, Clean, Dependable

-1 Tiny Company Controlling It All.

By April 2007 This $1.30 Company Could Explode With Quadruple-Digit
Profits Allowing a Small Group of Savy Investors to Become the First
New Nuclear-Age Millionaires!

In the wake of a historic energy pact and with just one government
signature, a 1,084% gain could occur almost immediately, sending early investors
into an overnight retirement...

Dear Reader,

Over 10,000 miles away from the United States, lying off Queensland's
Mount Isa in Australia, sits one of the world's largest untapped uranium deposits.

The potential energy resources that could be extracted from this area
are conservatively estimated to be worth over $4 billion.

One small Australian mining company owns and controls this uranium
treasure chest and is currently sitting on at least 75 million pounds of measured
uranium oxide in three different deposits around the area.

And thanks to over 1.3 billion Chinese citizens desperate to keep the
power on in their country, this company is about to become one of the biggest
energy industry success stories over the last 20 years and send quick-thinking
investors into an early retirement.

How soon could this company bump you up into millionaire status?

Once the uranium this company is sitting on is mined, estimates are that
investors could see gains as large as 1,084% by April 2007.

Here's the story...

A Historic Agreement = Historic Gains

This past April, Australian Prime Minister John Howard agreed to a
historic deal with Chinese Premiere Wen Jiabao for his country to become the
prime uranium supplier to China to help satisfy its massive energy needs.

China: The World's Great Energy Devourer.
Next Up: Uranium

In 2004 China consumed 2.17 trillion kilowatt hours (kWh) of
electricity, with consumption projected to rise 4.3% per year until 2025...

China became the second-largest petroleum consumer in 2003. In 2004 it
had a total demand of 6.5 million barrels per day (bpd).
The U.S. Energy Information Administration (EIA) predicts consumption will reach 14.2 million bpd by2025...

Coal comprises 65% of China's primary energy consumption. In 2003, 1.53
billion short tons, or 28% of the world total, was consumed by China. The EIA
predicts growth in consumption will average 6.2% per year from 2002-2005...

Natural gas currently accounts for only around 3% of total energy being
consumed in China, but consumption is expected to nearly double by 2010. Source:
Energy Information Administration, CIA World Factbook"

China gobbles up energy, commodities and natural resources faster than
it can find ways to replenish them. The country is desperate to keep power
grids running, making its nuclear agreement with Australia all the more vital.

China is the world's second-largest energy consumer after the United
States, and plans to make the shift away from fossil fuels, intending to
quadruple its nuclear energy production by 2020.

Australia, which holds about 40% of the world's known low-cost uraniumdeposits,
has stepped up to the plate to supply China with the needed resources.

Australia's current uranium exports sit at about $355 million per year.
With the partnership with China now in place, that figure is expected to climb to
$710 million by 2010.

But there's one small company sitting on $4 billion worth of uranium,ready to mine it and deliver it to energy-hungry trade partners. This company holds the exclusive rights to mine this land. It owns a huge section of Mount Isa and every last ounce of uranium that resides underneath it.

Yet due to an outdated government regulation, this company hasn't beenable to
begin mining the uranium and shipping it out to China yet.

But all of that is about to change. In just a few moments I'll fill youin on all
the details as to why this government interference will soon be a thing
of the past in Australia, allowing this company to start cashing in on its vast
uranium supply.

When this company does start its uranium production it will get a large
share of the $710 million up for grabs.

If you're one of the savvy investors who reads this Report and follows
the advice contained within it, a small fortune could end up in your pocket if you
act fast enough.

The new generation of 'Nuclear Age Millionaires' will soon be upon us.
If you care to join them, then there are a few things you'll need to know.

Nuclear Power Lives Again

Nuclear power had long been thought dead thanks to highly publicized
reactor meltdowns and safety incidents at Pennsylvania's Three Mile Island plant
in 1979 and the Ukraine's Chernobyl plant in 1986.

'Nuclear power didn't go away. Instead it got better.'
-- The Boston Globe

Most experts believed that the amount of negative publicity and public
health concerns these accidents generated would be impossible for the industry
to ever overcome.

20 years later, it appears they were dead wrong.

The world is entering into a new nuclear age. And uranium-rich companies
like Australia are going to become hotbeds of economic activity, with foreign
trading partners lining up looking to fill their quotas.

Industry insiders currently foresee a future where nuclear power
provides half of the world's electricity in the next 50 years.

In short, the world has moved on from these disasters and is once again
embracing the many benefits of nuclear power.

There is good reason to give nuclear power a fresh look. It candiversify our sources of energy with a fuel -- uranium -- that is both abundant andinexpensive. More important, nuclear energy can replace fossil-fuel power plants forgenerating electricity, reducing the carbon dioxide emissions that contributeheavily to global warming.'
-- The New York Times"

Now it's time for smart, profit-minded readers, like yourself, to do the

But I understand that the memories of Chernobyl and Three Mile Island
are hard to overcome for many, so in order to fully accept that nuclear power is
once again the wave of the future, you'll need to know the reasons the world
is experiencing a nuclear resurrection.

Nuclear Spark #1: The Environment - Nuclear power is clean energy.Global warming is blamed in large part on the burning of fossil fuels in power plants,factories and cars. With nuclear energy, emissions are no longer an issue. Between 1995 and 2005, U.S. nuclear generation avoided the emission of 41.0 million tons of sulfur dioxide, 16.9 million tons of nitrogen oxide, and 7.3 billion tons of carbon dioxide. (The Nuclear Energy Institute).

And on top of that, the amount of waste produced by nuclear energy is
far below any other viable energy source on the planet. The high-level waste
currently produced by all U.S. nuclear power plants used as fuel rods totals about
2,000 tons per year, compared to over 40 million tons of hazardous waste
produced by the United States each year (The Nuclear Energy Institute). As you can
see, when it comes to environmental benefits, there's no comparison. These
benefits even prompted President Bush to recently comment 'Of all our nation's energysources, only nuclear power plants can generate massive amounts of electricitywithout emitting an ounce of air pollution or greenhouse gases.'

Nuclear Spark #2: The Safety - Reuters said it best in a recent article
on nuclear resurgence, 'The safety record of the nuclear industry since Chernobyl
has been very good. Predictions of a major incident every 10 years have simply
proved incorrect.' The nuclear industry has stayed ultra vigilant since theChernobyl
accident, and has had 20 years to perfect its safety systems and developnew
safety technologies so that similar incidents will not occur again.

'Advances in reactor designs . . . make another Three Mile Island highly
unlikely. The safety record, the improvements in efficiency -- and the nation's
insatiable demand for energy -- argue for a push for more nuclear power.'
-- The Chicago Tribune

Nuclear scientists and planners have realized that Chernobyl was aflawed plant design and have since abandoned anything remotely resembling it whenconstructing new plants. And even the Three Mile Island accident, America's worstnuclear disaster, didn't kill or injure a single person, and that was with30-year-old technology in place.

In fact, there are over 10,000 civilian power reactor years of
experience throughout the world, and Chernobyl is the only nuclear power plant accidentharming the public. The U.S. Navy has been powering ships with nuclear reactors for50 years and has had no nuclear accidents. Safety is paramount to the industry,and its track record speaks for itself.

Nuclear Spark #3: The Economy - Since 2001, nuclear power plants have
achieved the lowest production costs between coal, natural gas and oil. Nuclear
energy isn't subject to rising fuel prices, testy foreign political situations,
natural disasters or price gouging.

If you compare nuclear power to the other major energy sources, the
numbers are astounding. One uranium fuel pellet, no bigger than a dime, equals out
to 17,000 cubic feet of natural gas, 1,780 pounds of coal, or 149 gallons of oil.

Nuclear Spark #4: The Politics - Just about every sensible country is
dying to climb out from under the thumb of foreign oil-producing nations,
especially terrorist-harboring Middle Eastern states. Nuclear Energy allows these
countries to do just that, without having to sacrifice their energy needs or take
a chance on an unproven alternative energy.

'We see a convergence of powerful economic and political forces . . .
that should lead to a renaissance of nuclear power.'
-- Prudential Equity Group, LLC

Uranium is located throughout the world, not only in Australia, but
Canada, the United States and South Africa. The supply at this point is almost
limitless. New uranium deposits are being discovered daily, so unlike the global oil
shortage the world is currently experiencing, uranium and nuclear power is in no
danger of running dry.

If we never discovered another ounce of uranium for the rest of time,the amount we currently have available would power the world for the next 70 years.The fact is, nuclear power is the world's best bet to free itself from itsunhealthy oil addiction, something that world leaders would love to be able to saythey achieved on their watch!

The overall benefits to nuclear power are startling. It's clean, cheap,
safe and allows the world to eliminate oil trade partnerships with
terrorist-sponsoring governments. It's for all these reasons that nuclear power is back in abig way.

'There's a 'nuclear renaissance' buzz emitting from engineers who design
and operate reactors, think tank academics who worry about long-range energy
and environmental strategies, utility company executives, top members of the
Bush administration and members of Congress.'
-- National Geographic

The investment potential in this burgeoning industry is off the charts.If you know where to put your money and when to do it, you'll almost certainly be inline for some massive gains. Once the shift to nuclear power begins full force,the profits will continue to roll in.

The small Australian company I told you about earlier, currently trading
for only $1.20, will be among the biggest winners. With Australia's newly signed
uranium partnership with China, this company's value is set to explode 1,084%
within the next 12 months alone.

This company would be a great buy as high as $20 a share. But it sits atonly $1.30. With a price that low, the room for growth practically takes your breathaway. And if you think my prediction of a 1,084% gain in the next 12 monthsisn't realistic, then take a look at what some other uranium mining companieshave produced recently.

Western Prospector Group shocked the world with 6,100% in the last 2

UEX Corporation delivered investors 4,900% in 3 years...

International Uranium shot up 2,600% since 2003...

Cameco Corp. returned 1,030% since 2002...

Strathmore Minerals went up 2,850% in the past 3 years...

Frontier Development Group took off to the tune of 1,400% since 2004.

Mining the Next Wave of Uranium Profits

In just the last four years, Uranium's demand and price have increased

In 2002, the price of a pound of uranium sat at $6 -- today it's shot up
to $45.

Current global demand is at 160 million pounds per year, and that's
before China entered into its agreement with Australia.

There are 440 active nuclear power reactors throughout the world, all
running off of uranium, and more are being planned. China alone is building 40.

'The industry is expected to burgeon in Asia in the next quarter
century. China, on top of its headlong rush to build coal-burning plants, also has
ambitious plans for new reactors: It can get 6,600 megawatts of power now from nine
reactors. It's aiming for 40,000 megawatts.'
-- National Geographic"

Quite simply, the global demand for uranium is hotter than the nuclear
reactors it's being fed into. And that's great news for investors who know the
right way to play this situation.

The small Australian mining company that owns the land off Queensland's
Mount Isa, underneath which lies 75 million pounds of uranium, is in the prime
position of having control of one of the largest deposits in the world.

Now that Australia is responsible for supplying China with the resources
needed to fuel its nuclear power program, uranium miners will be working
overtime in order to fill all the orders. This company will have more money thrown
at it than it knows what to do with.

Now I have to tell you, some people think I'm actually being
conservative with my projections, especially given the resources this company has under its control and the unprecedented demand it's going to receive once it begins mining Mount Isa.

The reality is, you could make even more than a 1,084% return. UEX Corp.
delivered 4,900% to its investors and International Uranium hauled in
2,600%. Clearly these same kinds of gains are in this company's future when you
look at the cold hard facts of its situation.

The truth is, this company is going to make investors a ton of money,
and in a very short time at that. The new generation of 'Nuclear Age
Millionaires' will be forged in the mines of Mount Isa in Queensland.

Get the name of this explosive stock!


Anonymous said...


I suppose what bothers me about these recent blog posts is that they are simply
other people's work regurgitated. As opposed to original work by you, the BlogMaster.

What are we paying you for anyway?
If we wanted to read others' posts we would not need to subscribe to this blogspot.

A reader from Georgetown, Washington, DC

curt504 said...

AU uranium: Allan, why not buy the US traded PK vs the AU exchange stock? If I'm not mystaken AU has a mining freeze on U. I suppose thie speculation is that the freeze will be lifted soon and the AU depressed U miners will expload??

PXP, what do you think about the Nov or Jan $45 calls? Jan volumn shows a small increase in interest.


A said...

curt.....first to all, sorry for the whacked formatting, but i wanted to get this published fast and speed trumped cleanliness in this case. As for buying foreign securites, I usually won't buy anything that cannot be booked and monitored electronically. I made an exception here becasue of the hype from Agora and it being a Dines favorite, one or both should push the price up and I'm looking for triple digit gains here.

PXP - I like the option plays, although I'm in the stock for now.


curt504 said...

Tnx Allan. I seem to have a problem holding high priced stocks. Seems like dead money. I should get over that I think, so it's a perception problem I need to get over.

A "curious" Tobin Smith stock pick guessing game:

"How a Secret Island off the Coast of Denmark Is Causing Silent Panic at OPEC

Right now, 4,400 residents on this "Secret Island" pay NOTHING for power. When their free-power technologies go mainstream in 2008, you'll witness a $25 billion global energy shift that will make Middle Eastern oil WORTHLESS. Early shareholders in these free-power technologies could make hundreds of thousands of dollars ... EASY! "

BTW to all: a common and I believe a reasonable advanced outlook for a future hot area is: water and water infrastructure repair/builders [IE China/India are still dark ages with their water]. I haven't DD'ed who is in the water and water infrastructure business and who would be the break out candidates.


Anonymous said...

The "secret" island is Samsoe...

...wind turbines, solar panels and "giant straw-burning furnaces." A few companies mentioned as players, but it sounds like it's been a mixed bag.


Anonymous said...

Maybe a good idea for long term plays here is to buy a diversified "basket" of alternative engergy?

What is the best way to do that? One stock? A couple of stocks w/strong fundamentals?

As always, I prefer leveraged investments.

A reader from Georgetown

Anonymous said...

t cocktail chatter do you hear about the realistic possibility of some compromise, any compromise on the "Death Tax"? Increased exemption amounts, reduced rates? The Senate blew it's chance for a compromise inspite of offering to give away the store.

I am very discouraged, can you give me any reason for hope?

Geg Reiman

Anonymous said...

Sorry for the screwed up previous post.

Dear Reader from Georgetown:

What cocktail chatter do you hear about the realistic possibility of some compromise, any compromise on the "Death Tax"? Increased exemption amounts, reduced rates? The Senate blew it's chance for a compromise inspite of offering to give away the store.

I am very discouraged, can you give me any reason for hope?

Geg Reiman

Anonymous said...

I dont know why jimmy dine has overlooked the Northern Territory of Australia where Uranium mining is allowed - while being so bullish on SMM - SMM does without doubt have an enormous u3o8 resource but it is locate in Queensland and the premier of that state - Peter Beattie seems to not only tow the party line on the no new uranium mines policy judging by comments he has made he seems personally against it (although I do retain a small holding because that must change one day)

However, there is no uranium mining freeze in the Northern Territory of Australia where Compass Resources is set to establish what will probably be Australia's next urannium mine (Under Australia's Consititution, Queensland Tasmania NSW etc are States and all states at the moment have labor governments in control - labor party policy is no new uranium mines - so the premiers of those states must tow the party line in that regard despite their personal preferences - however, the constitution did not give the Northern Territory statehood as such when it comes to mining - that part of Australia is administered by the Federal Government - and guess what - the Liberal/National coalition have control in the Federal Government - and they want uranium mining to help balance our trade deficit

Compass is currently progressing towards mining a large oxide sulphide deposit at batchelor in the Northern Territory and the share price does not even relect the value of this atm Huntley's (a respected Aussie brokerage house) has a buy on it up to $5.15 yet it is sitting around $3.80 after the recent correction on the ASX -

Compass (CMR.ASX) has leases over the old Rum Jungle uranium mine area - Australia's first uranium mine - it only closed down when u308 prices fell and could not later reopen because of the labor party block on new uranium mines - with a liberal government in control the territory is now open for bussiness with respect to uranium mining - provided proper environmental approval -

The stuff is still in the ground waiting to be proved up - compass has a good idea what is still there from drilling in the 1950' - 60's but have proved up a small amount (14million lbs) nearby to start the approvals process (makes sense to offer a smaller amount to help minimise opposition by greenies etc) - there will be oposition but as far as I know the government can only knock an application on the head if it is environmentally dangerous - and guess what again - the rum jungle was poorly rehabilitated and green movements have been calling for years to have it properly rehabilitated because it is leaking u308 contaminnated water from the old mine but they dont want to pay - so will the federal government say no you cant mine it coz we wanna spend money cleaning it up or will they say ok - it has been a thorn in our side for years - you can mine it on the proviso you contain and treat the current leaking and clean the mess up properly in 20 years time when you finished mining - what would you do

You have heard of Ranger Uranium mine in the northern territory no doubt - it is set to run out of uranium around the same time compass starts digging - nice hey

here is an extract from the aussie brokerage house about her
A preliminary uranium resource has been delineated at the Mt Fitch prospect. The indicated and inferred resource is 8.9Mt @ 1.01lb/tonne for 8.9Mlbs or 18.3Mt @ 0.79lb/tonne for 14.5Mlbs at a lower cut-off grade. Drilling in August will chase the mineralisation to the north, west and at depth. A high grade intercept of 19m @ 4.6lb/tonne occurs along the northern edge of the resource. Mt Fitch is only one of several promising prospects and has not been closed off. A preliminary development study and cost estimate for Mt Fitch uranium has begun. Processing rates up to 2Mtpa feed will be investigated with a full feasibility study likely to follow. A new uranium prospect has also been identified at Area 55 West. Previous results include 3.7m @ 2.58lb/tonne U3O8. Area 55 West validates the concept of a central uranium processing plant serving multiple orebodies in the region. That said, CMR's primary target at Rum Jungle is a Ranger type deposit (50 to 100Mlbs U3O8).