Company: Anaconda Uranium Corporation
Symbol: ANU
Exchange: VSE
Last Price: 0.35
52 Week High/Low: $0.36 - $1.05
One Billion Dollars Of Uranium Trading At 40 Cents
Anaconda Uranium Corporation was formed in early 1996 by an
experienced team of mining professionals to take part in the boom in
uranium prices which began in 1996. Since inception, Anaconda has been
successful in acquiring uranium reserves of approximately 70 million lbs. in
four deposits located in Australia and the U.S. At the current long-term
contract prices of $14-15 per lb., that translates into an in situ value of
approximately $1 billion.
Headed by John Cook, a veteran Canadian mining engineer, Anaconda has
focused on acquiring proven uranium reserves in projects, which were drilled
and developed during the last uranium boom in the 1970's. At that time,
utilities and energy companies aggressively explored for uranium as prices
soared to $50 per lb. in early 1979.
As supply was added to the market, prices collapsed and many developed,
proven projects were put on the shelf or abandoned. Over the past 10 years,
nuclear generating capacity has continued to grow and uranium nuclear fuel
demand today outstrips uranium mine supply by two to one. For example,
current uranium demand totals 80,000 tonnes whereas mine supply is only
43,000 tonnes. The large shortfall has been met for large stockpiles, which
have been dwindling over the past 10 years.
The end result is that spot prices have rebounded strongly from lows of $7
per lb. in 1994 to $11 today. Importantly for Anaconda, 95% of uranium is
sold under long term contracts, which today are fetching between $14-$15
per lb. According to several mining analysts' forecasts, current uranium
supply and demand fundamentals suggest prices could soon rise in excess
of $20 per lb.
Anaconda's flagship project is Ben Lomond in Australia. At $15 contract
prices, Ben Lomond has a present value of C$16.6 million or C$1.07 per
Anaconda share. At $20 per lb., then value per share rises dramatically to
C$2.20. At $15 per pound Anaconda's total uranium portfolio has a present
value of C$3.05 per share using a 10% discount rate. Anaconda's total
uranium portfolio at $20 prices has a present value of C$10 per share.
Management remains focused on building a diversified energy fuels
company and continues to aggressively seek out opportunities. Most
recently, Anaconda has entered into negotiations with a major European
nuclear fuels agency to acquire an interest in a uranium project slated for
production in early 1999. Such an acquisition, combined with planned
production from Ben Lomond in Australia, will give Anaconda a tremendous
competitive advantage in the market.
John Cook, Anaconda's President, is leading this vision of growth in
production and reserves. Mr. Cook was previously Vice President -
Engineering with LAC Minerals before it was acquired by Barrick Gold and
subsequently Vice President - Operations with Goldcorp, another large
Canadian mining company. Most recently he was Director - Operations for
Navan, an Irish mining company with operations in Europe.
Cook is joined by an exceptional board of directors with more than 120
years of combined experience in mining exploration, mine development
and financing. The latest addition to the board is Hugh Courtney who was
more recently Vice President - Commercial with Power Resources - one of
the United States' largest uranium producers. Mr. Courtenay has more than
20 years of global uranium marketing experience.
We believe the timing is excellent to provide investors with a pure uranium
vehicle such as Anaconda Uranium Corporation. Within a short period of
time,
Anaconda has developed a high quality reserves portfolio, which provides
shareholders with excellent growth potential.
For more information on this underdeveloped/underfollowed company,
please call
Ann Slattery
Telephone: (416) 864-1012
Fax: (416) 864-1369
E-Mail: aslatter@concentric.com
Web-site: inline-online.com
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Mr Metals |
