Jay, I wouldn't worry terribly about ERA.AX.
Out of the miners in Australia:
ERA.AX
WMR.AX (NYSE: WMC)
PDN.AX
and the Canadian listed uranium plays
SXR.TO
LAM.V
only ONE of the above Auzzie plays has a license to export the stuff: ERA.AX
Moreover, some plays (LAM.V) are in states (Queensland) that have an official policy of banning uranium mining.
ERA.AX has two mines: Ranger and Jabulika. Ranger is in operation, and while Jabulika is currently being backfilled as ERA.AX negotiates with the Aborigines, the Jabulika mine is one of the largest and purist mines (0.51% purity, world avg 0.20%) in Australia. ERA.AX expects to be able to mine this site and Auzzie, having to steal their energy from places like East Timor, will not be able to remain in a state of denial forever, particularly with India and China on their doorstep asking for uranium for reactors.
For one comp (of course, you can look at DCF, etc), Cameco has 550m lbs of uranium, mkt cap about 4.75bn USD.
ERA.AX has about 650m lbs between Ranger and Jabulika, current mkt cap about $700m USD,
uic.com.au
uic.com.au
This is just the beginning,
David |
