Early-in investors stand to make four times their money on this hidden cache as the company begins full scaleproduction... Dear Reader, Thirty years ago, the big energy boys threw in the towel. One by one, they folded their tents, kissed the hundreds of millions of dollars they had invested goodbye, and called it a wash. They walked away from land that had been extensively drilled... where promising deposits had already been found... where feasibility studies were completed... and even land where pilot and commercial production had been tested. You see the bottom had just fallen out of the uranium market. Spot prices plunged from $40 per pound to just $6 a pound. So the billion dollar energy players like Sonoco, Chevron, and Union Carbide, decided to cut their losses, write off the entire operation and never look back. Big mistake. Huge. Getting Rich From The Bull Market No One Saw Coming... Never did they imagine that uranium would be trading for more than $56 a pound today. That's a 700% increase from 2000 alone. Making those abandoned reserves worth more than $14.6 billion today. And if uranium prices continue to rise at their current spectacular rate, those reserves could be worth closer to $30 billion. Talk about leaving money on the table! But one savvy company saw the turn-around in this market before everyone else. They led the rush on public lands, signed the earliest land leases, and secured claims to over 40,000 acres. Eventually those forty thousand acres became over 200,000 acres in prime uranium mining districts. Right now this company is already drilling on several of their promising properties. And recent evaluations confirmed that just one of these properties contains 5.7 million pounds of uranium. At today's spot prices this property alone is worth $319 million dollars in revenues. Once this first property comes online, Wall Street will be all over the stock. Right now this company trades for little more than the value of this single property. And yet the company owns 31 additional advanced stage properties – each with reserves of 1 million to 18 million pounds. And that's why I'm writing to you today. Early investors who get in now could earn 300% or more as this property begins production. In fact renovations are already underway at the processing facility in anticipation of ramping up production. But you've got to jump on this now before Wall Street discovers the stealth bull market in uranium. Once they do, this stock is going to pop – and fast. Only forward-thinking investors will be able to say they got in early and rode this bull market all the way to the top. Here's the full story... Following the $14.6 Billion Treasure Map How did this no-name company manage to secure 200,000 acres of the richest mineral reserves in the country? Simple. They followed the map. Detailed maps left behind by the energy giants in the 1970s. Instead of running around grabbing acres of potentially worthless land...this company did their homework. They bought or leased the old proprietary land databases that used to belong to the likes of Union Carbide, Hecla Mining, World Nuclear Co., United Nuclear Co., and Ranchers Exploration and Development Corp. They assembled what is now one of the largest uranium databases in the U.S.xx The database can tell you where each deposit is located, its approximate size and composition, whether it was drilled or not, and what it costs to get the metal out of the ground. It's as if someone gave you the combination to the bank vault, exact directions on how to open it, and told you they didn't need the money. Well that's exactly what these big energy companies did when they handed over the data. Back then, they never imagined they were walking away from billions of dollars in profits.
Once this upstart company assembled the data, they sliced and diced it to pinpoint the biggest and most promising previously explored properties in the abandoned uranium mining district. They created a veritable treasure map covered in large red X's marking the location of billions of dollars in energy reserves. And then they pounced on them before the competition could sniff them out. Unbelievably, they scooped these properties up for next to nothing - paying just $1 an acre for the first 5 years of the lease for some state land. And that's how this little company acquired one of the largest portfolios of previously explored and developed uranium properties. Properties that are loaded with uranium worth over $14.6 billion. According to an independent industry bulletin, this company used their database to snag 27 previously drilled projects with historical uranium deposits ranging from 1 million to 18 million pounds each – including 15 properties located smack dab in the richest uranium land in the US. Properties that are now worth a boatload of money at today's spot prices!
For the past five years, uranium has been in a stealth bull market. At the end of 2000, a pound of uranium cost $7. As of October 9th, the spot price of uranium was $56 a pound. That's a 700% increase, and yet this bull run hasn't even made the headlines.
Uranium has been the best performing mineral in the current commodities bull market. And the recent broad market correction illustrates just how strong this trend is. When the market corrected in May and June, commodities fell across the board. But not only did uranium defy the selloff, it continued moving higher!
At today's prices this little company is sitting on 260 million pounds of uranium worth over $14.6 billion dollars – and that's without factoring in any additional increase in the spot price.
So far, the financial press has almost completely missed the story – which means the bull market is still entirely "invisible" to most investors. And that's good news to investors who get in early. If you know the value of this precious commodity, you could make 300% or more on this junior uranium company. Investing in the New "Big Oil" But you've got to jump on this play before the Wall Street boys figure it out. They've been watching the big eight uranium producers and they are just now realizing that there are far richer pickings to be had in the junior uranium companies.
Once Wall Street expands its search to the juniors, this one is going to light up the radar. The institutions will start piling on money and the stock could rocket higher.
And the pros aren't the only ones. Main stream investors are finally sniffing out this extraordinary investment opportunity. According to Mitchell Dong, Chief Investment Officer of Solios Asset Management said in September, ''I think we are seeing the tip of the iceberg of financial investors entering the physical uranium market.''
This could be your only opportunity to get in on the biggest robber-baron play of the 21st century. The nuclear power renaissance that is just now taking off could rival the great oil run-up that made Rockefeller a fortune with Standard Oil.
Only forward-thinking investors with inside information will be able to say they got in early and rode the uranium bull market all the way to the top. Let me show you how it's done...
How to Cash-in On The Greatest Fuel Shortage of the 21st Century – Surprise, It's NOT oil! Uranium is facing one of the greatest fuel shortages of our generation. In 2005, demand for uranium was 200 million pounds, while new supplies totaled only 100 million pounds. That's a 50% shortfall!
And the situation is only going to get worse. It takes 12-years to build a new uranium underground mine and no one has been building them in the US for years and years. After the 1979 accident at Three-Mile Island, uranium prices collapsed, and nuclear energy was declared all but dead. So uranium mining companies closed shop.
Now with the renaissance in nuclear power, there's a desperate scramble to scale back up, with new junior companies like this one leading the way. After a 33 year break in construction, more than a dozen utilities in the US just informed the U.S. Nuclear Regulatory Commission that they were interested in building 18 new nuclear plants.
And the US isn't the only country turning to nuclear power again. All told, there are 180 new nuclear power reactors currently proposed or planned world-wide. That's a whopping 41% increase over the 441 reactors currently in operation. And these plants will be twice as big as the old ones...which means they will use close to 1 million pounds of uranium per year instead of the 500,000 pounds existing plants use.
There's only one problem...
There's not enough uranium for the new plants that are about to come online. In fact, there is not even enough uranium for the plants currently in operation!
What that means is that there's a huge demand for every pound of uranium this company produces. And since the cost of uranium is only 5% of the overall cost of operating a nuclear power plant – plants will pay just about anything to get their hands on it. That means the sky's the limit on revenue potential for suppliers and huge gains for shareholders. "For the first time in decades, increasing the role of nuclear power in the United States may be starting to make political, environmental, and even economic sense." – the New York Times | "More than 600 coal-fired electric plants in the United States produce 36 per cent of US emissions – or nearly 10 per cent of global emissions – of CO2, the primary greenhouse gas responsible for climate change. Nuclear energy is the only large-scale, cost-effective energy source that can reduce these emissions while continuing to satisfy a growing demand for power. And these days it can do so safely." – Patrick Moore, co-founder of Greenpeace. | | A Supply Gap of Epic Proportions and Huge Profit Potential Right now global uranium production is stuck at 40,000 tons a year. Global demand is about 65,000 tons a year and rising.
That's a huge shortfall. And while new mines will increase supply, new nuclear reactors coming online will increase demand even faster – so the gap isn't about to close anytime soon.
This huge supply gap is driving the spot price of uranium through the roof. In fact the price has jumped more than 33% in the last 3 months alone. According to one long-time industry consultant, that may just be the beginning.
Dustin Garrow, who acts as an intermediary between uranium producers and utility fuel brokers, recently predicted the spot price of uranium could hit $80 to $100 per pound in the coming months. That's a 1,328% increase since 2000!
If anybody should have the skinny on future prices, it's Garrow and if he's right, the reserves of this junior uranium company would be worth a lot more than $14.6 billion - they are valued at today -in fact, they could be worth as much as $26 billion. Yet, amazingly, this company trades for a market cap around $350 million today.
And that's why I believe an investment in this company is the perfect way to play the uranium bull market. You see, most of the major uranium mining companies – the Big Eight – already have a good chunk of this future price increase factored into their stock.
Let's be serious, BHP Billiton already trades at a market cap of $120 billion. Even if the spot price of uranium doubles, it's unlikely that BHP would jump from $40 a share to $80 a share.
But this junior uranium company currently trades for less than eight bucks. And it's much easier for a company to move from $8 to $16 – especially when it's trading at a greater than 90% discount to the value of its current reserves.
But that's not all. Recent developments in Russia could propel this company to the top of the list of suppliers, here's why... Where Will All These Plants Get Their Uranium?
• China is building 1 to 2 new nuclear plants per year to try to meet exploding energy demands
• India plans to build 32 plants by 2050 – with 8 currently under construction • Japan will have 5 plants online by 2010
• Canada plans to build 12 new nuclear plants in the next 10 to 15 years
• Russia wants to build at least 13 plants in the next 10 years.
As these plants come on-line, this junior uranium company will have dozens of customers competing for its supply. | | If Russia Pulls Out, the Resulting Crisis Could Send Uranium Prices Through the Roof You see, uranium producers only covered 65% of last year's demand – the rest came from existing inventory and uranium from decommissioned Russian warheads.
12 years ago when Russia agreed to dismantle its nuclear weapons, it promised to hand over the uranium it retrieved to the U.S at a fraction of the going market price. Now they realize they got stuck with the short end of the deal. And Russia wants the terms changed...and they are threatening to hold on to their uranium until a new deal is made.
But even if the U.S. is able to forge a new deal, the stockpiles have already been cut in half. And uranium from Russian nukes is slowly, but surely, running out.
Right now, we're 4 to 8 years away from depleting the Russian reserves and existing inventory – assuming the Russians agree to deliver the remaining supplies at any price. After all, they need uranium for their own fleet of 31 nuclear power plants. And they have more new plants under construction than any other country.
And if Russia reduces our supply, the big eight uranium producers are unlikely to come to our rescue.
The three biggest producers – in Russia, Uzbekistan, and Kazakhstan – will be busy supplying their own needs as well as meeting India's ambitious plans. Australia's Rio Tinto and BHP Billiton will be busy delivering the 20,000 tons of uranium a year they just promised to China.
That leaves three of the big eight. Cogema supplies nuclear power that fuels 80% of France's energy needs – not a lot to spare there. The US already absorbs most of Cameco's production. And with South Africa's ambitious plans for nuclear plant construction, Rossing's production could soon be tied up by its home market.
And that's why utility companies are looking to the next-generation of junior uranium companies to feed this growing appetite for fuel. Companies like the one I've been telling you about today.
Companies with proven reserves, located in a low-risk areas with stable governments, where uranium can be easily mined using low-cost technology...
Only one company out of more than 200 junior uranium companies meets this definition. And I'll give you all the details on this explosive uranium play for FREE when you become a member of my exclusive investment research and advisory service The Wealth Advantage. |