Why is EMU a laggard ? One possible reason - when I went through their list of projects, they well ALL low grade, often bought from some other company which did not develop them, but minee other properties. Is there something wrong with these properties ? Maybe ...
Compared with some miners with grades over 2%, it will take long and more money to put EMUs properties into production. Also, the uranium will cost more. I expect many of these properties will need over $75 per pound to have a good return,
Longer term, if lots and lots of high grade properties are found by ohters, the Uranium price will come down, squeezing margins.
I own EMU as my #4 Uranium miner. I would own producers first.
I view it as a "call option" on sky high uranium prices
Dennison, URRE, biggest positions
URZ EMU medium positions
FDC FCO small positions
I should probably have a little more diversity. |
