Uranium update – The AMP feels your pain , for you have no gain

Cubes and cuboids of uranium photographed in the 1940s (Photo credit: Wikipedia)

Please note our book ” The Apprentice Millionaire Portfolio ” has extensive coverage of the sector / players and maintains an

” AVOID ” rating on same.

This missive is from from Canaccord trying to drum up interest:

We combined some comments from Dave Talbot of Dundee
Securities on his recent visit to Africa with some of his most
recent research reports to give our readers an update on
some of the uranium stories we follow.
Denison Mining background: Canadian based uranium explorer
and developer with assets located in Saskatchewan,
Mongolia, and Zambia. Denison has 28 projects in the Athabasca
Basin, including non-operating interest with AREVA in
two late stage development projects, Midwest and McClean
Lake, and an operating interest in their flagship exploration
property, Wheeler River. Denison is also engaged in environmental
and mine decommissioning services through Denison
Environmental Services, and manages Uranium Participation
Corp., a uranium investment holding company with assets
held primarily in U3O8 and UF6.
Russ Dratwa: Hope your recent trip to see Denison’s interests
in Africa were adventurous but safe. Curious if there’s anything
new we should be aware of Dave?
Dave Talbot: On 1-Feb-13 we visited Denison’s wholly owned
Mutanga project in Zambia. Denison’s Mutanga project in
Zambia isn’t getting anywhere near the value it should be getting.
Mutanga has a current resource base of ~49.2MMlbs
grading 0.03% U3O8. Currently, the market doesn’t give much
value for Mutanga inside Denison, although we provide $1/lb
or $0.11/share in our 10% DCF model. Denison trades closer
to US$4.25/lb given its high grade assets in Saskatchewan
and near term production potential. However, we believe that
this project would be a company maker for almost any other
junior exploration company. It has all the hallmarks of a good
project – good jurisdiction, infrastructure, people, large resource
base, tremendous upside potential and similarities to
other world class projects.
Paladin Energy background: Paladin Energy is an Australiandomiciled company focused on uranium production, development and exploration with projects in Namibia, Malawi and Australia. Its flagship operation is Langer Heinrich, which recently completed its Stage III ramp-up capable of 5.2 MM lbs production. Kayelekera is completing its ramp up to 3.3 MM lbs annually. The company produced 6.894 MM lbs in FY2012 and guidance for 2013 is for between 8.0 and 8.5 MM lbs U3O8.

DT: Can’t really make a comparison between Hathor and
Patterson Lake South (PLS) yet. No one knows how big
this can get and no one has confirmed that the rocks
aren’t as complex down there either, although without all
those intrusives around I would expect it to be less of a
mess. Not entirely sure though, there are more conductive
structures lighting up on the PLS ground, but the rocks
look very good. Grade isn’t there yet from what I can
see….Hathor had some spectacular grades (up to 86%).
RD: … & if you could only buy one Dave, would it be DML?
DT: Actually would look at Fission Energy. You get 1/2 of
PLS, 0.35 shares of Denison and almost $15 MM in postdeal
cash for free….so best of all worlds. Rio Tinto is
pretty hot and heavy on the early stage hard rock Dome
property of Fission (soon to be Denison).