I’ve trimmed down my Entrée position incrementally since my original post, #15050, and am down to a small keeper position now. The stock may be heading higher still which will be great for my remaining position, but risk/reward here vs where it has come from relatively quickly and my comfort level said take some profits along the way. I like that the company has been raising cash at good levels and that they have arranged for 100% control of the property though. Maybe that will mean there is a JV announcement coming.
As an alternate position I started into IUC at 50 cents, International Uranium recently – a Lundin Group stock. Does anyone own this one or follow it? They control a substantial land package in Mongolia of 4.2 million hectares. An interesting company I think. Here are some details:
-66.5m shares outstanding, 67.4m fully diluted.
-Working capital $7.6m USD as of Q3, cash and short-term investments of $5.5m USD.
-“Primarily engaged in the business of recycling uranium-bearing waste products, referred to as ‘alternate feed materials’, for the recovery of uranium, alone or in combination with other metals, as an environmentally preferable alternative to the direct disposal of these products.”
- 2000 ton per day White Mesa Mill near Blanding, Utah. This recycling generates cash flow and income when there is sufficient mill feed stockpiled to justify operating the mill. Generated a profit of 9 cents a share or $5.9m USD for the first 9 months of this year on revenues of $12.3m USD when the mill has been operating, however there are mill stand-by costs between runs and timing of runs therefore is inconsistent.
-drilling has commenced at the Tsagaan Tolgoi project in western Mongolia. The drilling campaign, which will include 15 continuous core holes totaling approximately 3000 meters, will test at least four identified copper/gold targets in the Shiveen Gol intrusive complex.
globeinvestor.com
This is the link to their new Mongolia Exploration page:
intluranium.com
For exposure to such a large exploration land package in Mongolia with an active drill program underway, some cash in the till and further potential cashflows from uranium recycling, as well as uranium exploration properties and resources it could be worth a closer look. Risk would be potential environmental liability at the mill beyond the $12m bond posted.
I’d be interested in any comments.
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