COFFEE WITH CARROT HEAD!
A NEW BEGINNING, CROSSING THE MOST AMAZING RIVER, PATIENCE.
I begin this new article, the first of the new U&AE thread sitting on a flight going to London. On my left as I write, the Nile winds due North into Egypt. A sparkling serpent of water winding through a dry land, perhaps as dry as any I have ever seen. There is humanity down there 35,000 feet below me. A vein of life surrounded by the desert that disappears the moment this giver of life is dammed upriver. Dependent on the water are hundreds of thousands of people. The most amazing thing is there is no greenery surrounding this river as it runs through the sands of the Sudan and Egypt. There is no beauty on this river. There is no blue as in some but grey, angry and even from this height there appears to be desperation down there. Thousands upon thousands of houses continue to sit on either side as the plane moves at 500 miles an hour following the course of the Nile.
In the distance the desert envelopes the small strip of humanity on either side that depends on this river for life. I am in awe as we change course away from Libya and the Sahara looks up, totally dry and uncompromising. I wanted to see the Nile so much and I did. Be it from the air but it remains breathtaking and impressive. There is a different kind of beauty, even in this uncompromising scenario there is a sight to be held. I always thought the Nile would be a narrow river, but this leaves me in awe, as at points the Nile must be a mile may be even two wide. I cannot imagine how civilization moved up and down this, the longest river in the world.
How amazing it must have been to navigate this river South. For mankind to move into what would have appeared to be the uncivilized world. How amazing John the Baptist must have found this place or the first group of Judaists to move into Ethiopia and convert the people there and look upon lake Tana as one of the sources of the Nile? If one believes….they say the Arc of the covenant resides there.
I think it is appropriate to begin this new thread with something that will inspire us to move forward, through all the hardships we encounter and take solace in the fact that there are millions who face a daily task of survival even more daunting than our own. The Nile’s presence in this hostile environment considered the cradle of mankind and civilization is a site one should see from where I sit. I am surprised that most others have not noticed on this flight as our foresight in Uranium has not been either by the majority. How is it that so few can see the future when many choose to ignore or simply be in ignorance out of a lack of knowledge? It is not for the lack of availability of this knowledge but rather they choose to ignore it.
I thought it would be easy to leave Kenya. I assure you it was not. I tried to understand what I was feeling and why I was feeling so saddened by my simply leaving a country that had nearly destroyed me, I suppose it is akin to a child leaving his mother be she good or bad for she is the only mother he has known and will perhaps ever know. The world for this child is once more a new and strange place. I take comfort in the fact that some of my immediate family will be awaiting me when I get to the other side. I hope for a better future and I go forth with a positive thought.
Good morning its perhaps a cold day in London. I believe that temperatures are around 14 degrees centigrade during the day but drop to around zero at night so its not quite Kenyan weather.
I begin this article with a company that we have talked about on many occasions but we have never looked at it in quite the detail as we shall over the coming articles. Paladin resources will be looked at in detail. Along with Paladin we will also look at Deep yellow resources as I see a very good potential in this company too.
Paladin’s story is not new and in a world of takeovers and corporate mergers the company remains the only independent producer in the Uranium sector. Paladin started very small but has shown true grit by not only moving on to gain some considerable resources but also to become a producer which very few if any explorations companies achieve. The company has also managed to acquire some major resources not only through discover but also through buying out assets from Fronteer resources recently. Along with this it also has shares in another Australian company called Deep Yellow resources which I have mentioned before in the previous thread. Deep yellow is also exploring in Namibia where Paladin has the Langer Henierich mine already in production. Apart from that Paladin also has an operation in Malawi where it is also in production. Apart from that Paladin is also active in Australia. Paladin has some 20% in Deep yellow.
Paladin has a good sized deposit and producing mine in the Lager Heinrich. The fact that deep yellow continues to explore and increase its deposit will help Paladin remain in Namibia and reduce its costs when it does want to expand even when LH will begin to deplete. I think Paladin will look in surrounding countries for more deposits or will concentrate on the Aurora deposit if the moratorium will be lifted. Paladin may be the target of future takeovers from larger companies as its deposits have increased and being independent makes it the only company of its kind. As recently as April 2010 there was speculation that a company known as Cheetah resources had acquired a substantial number of shares of Paladin. Cheetah is owned by Uranium one. What ever plans Cheetah and Uranium one had were thwarted once the substantial share acquisition was exposed. So Paladin may be the focus of Uranium one but also perhaps now with a larger resource even Rio Tinto might be interested. I do not think any of the larger companies can afford to ignore Uranium and they must have an agenda to acquire uranium deposits through acquisition of smaller exploration companies as their own current deposits begin to deplete. With this in mind we go askew and look at a company that is in the neighborhood of Acap resources and that is impact minerals. Impact is looking for Uranium among other metals in Botswana and has an agreement with Impala Platinum. Impala is looking ofr deposit sand has impact working on 8 different projects currently. http://www.internationalresourcejournal.com/resource_in_action/march_11/impact_minerals.html Impact recently ( as the article states) came up with a strong occurrence of Rare Earths in Botswana. However these are early days and its simply a heads up that there are others in the vicinity of Acap. Green land as we mentioned has increased its deposit by around 35%. That’s a big boost setting up as among the largest deposits in the world. These all viable takeover targets but its not happening soon. It will take time. Large miners have no time to look for deposits they prefer to negotiate with viable confirmed deposit acquired exploration companies as a quick and profitable way to continue doing business. Exploration is a risky business. Our advantage is to be early in the field and locating these exploration companies that have found these deposits and get onto them. Its not just about giant deposits its also about locations and good management. Its about the ability to finance further exploration and the companies success to raise capital. The ability to raise capital tells us that others have faith in the company too. It boosts our confidence in the company. Owners of companies tend to believe in their company more than anyone else. Even when things are not going well like making excuses for their child’s behavior, owners make excuses for their companies shortfalls. I never accept that owners have huge shares in their own companies. It simply tells you that one has confidence and faith in his own ability but that in itself can be an illusion. The proof is in the pudding and in this case its yellow cake. Concentrations along with large size deposits is excellent. Extra large size shallow deposits but with lower concentrations is also acceptable. Politics, geographic and other factors make it difficult to figure which companies are worth while investing into. One of these companies that confuses me more than others is Continental precious minerals. Is it? Isn’t it? Is it? Isn’t it…..Ach I hate waiting like many of you but I have no option but to wait it out. Yes their deposit may be very large but its also very diluted. Perhaps one of these days it will shoot up, as soon as there is a rumor of a buy out or a partnership with a mega miner. Until then its going to be the waiting game.
I have finally arrived in London and the last few days have been spent looking for vehicles and internet connections. There are two companies that are willing to provide high speed connections via fiber optics directly to the current residence. Apart from that there is an interesting prospect that has come up in terms of expending the residence by buying out a neighboring property. This will throw a spanner in my works for a quiet property outside of London. One of the problems that has come up is that while ADSL is available in many of the areas being away from the exchange reduce the speed drastically and that does not help. So a compromise will have to be made. This is not making Mrs Sagi very happy. She does not want two kitchens she wants one large family kitchen humph! Mrs Sagi is not compromising!
Gold made another attempt once more and fell back. I mentioned that this might happen several times and whether it will break out or not is anyone’s guess. Time will tell. People look depressed here. Its interesting to note how people are not willing to take pay cuts but are willing to loose their jobs. Prices for vehicles have been dropping and special offers are being made all the time.
I continue to observe Uranium stocks and as I suspected it seems likely that we will see moments of weakness for a while and so we should be patient. Almost all the followed stocks such as PDN, UUU, DNN etc have dropped a little. I would suggest that we wait a little and see which direction the graph is going to paint in a week or two from now. That does not mean that one should not buy in on major weak points. If you see DNN for example dropping below 2 dollars would be a justifiable buy. If PDN drops below 3 dollars than it’s the same. So pick your stocks and watch for a drop below 52 weeks lows and BUY in. At least make an entry.
Do not believe this for a moment. I have studied the Chinese and they will take every single advantage they can to get Uranium at low prices either through buying into exploration companies or outright simply buying the uranium on the spot market or even making contracts if possible. http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=acuM6WHtfaPI China knows very well that it cannot afford to drop its Nuclear program or even reduce it. It is already on back burners on many of them and if anything I would suspect that they will use this scenario as leverage for getting contracts in cheaply with contractors. That is the way the Chinese do business they are sharper at that than the sharpest Japanese katana. Business whether buying a bargain at a market or in the international market is the same. One has to have an advantage to get over your price to be accepted. The Chinese are facing a big power shortage at the current pace of development. They really cannot pull the wool over our eyes not unless we were blind dumb and deaf and had only two brain cells left and they never met. What we are likely to see is a slow down in investor interest as the discussions on Nuclear power once more move into the negative and after another year or so we will see interest once more coming back from the investor. It’s a game of patience. http://www.businessinsider.com/mickey-fulp-long-term-uranium-demand-will-continue-2011-3
I do like both of the companies mentioned in the above article. I think in terms of the US Strathmore has a great deal of potential. Though they have spun off some of their assets into Fission resources to take over their Canadian assets they continue to develop their US assets and in terms of those they have more than any of the other companies based in the USA.
Most of the companies we follow have dropped to prices of around October last year. It may be a good time to get in but I am a little hesitant. I would suggest keeping a close eye on the stocks the opportunity to buy in quick has gone and we must now wait for a drop perhaps this summer is possible.
Its getting a little warmer now and spring appears to be in the air. Perhaps its time for me to take out my bow and kit and join up fellow archers while I wait for Uranium targets. Its only practice for the real stuff.
Have a great weekend and I bid you welcome to the new Uranium and Alternative energy thread.