Avoiding Australia's Uranium Bloodbath
By Andrew Mickey
We’ve known this has been coming for months now. Less than a week ago, Australia’s uranium industry was dealt the death blow no one ever saw coming. But one company is perfectly positioned to avoid the ensuing bloodbath in Aussie uranium stocks. And Citigroup, UBS, HSBC and JP Morgan have all been loading up on shares of this tiny $4 stock. But I’ll get to that in moment.
First, if you own any Aussie uranium mining stocks, it’s time to dump them now. Unwitting investors have been buying Australian uranium stocks like the rule was already discarded. Dozens of highly speculative uranium stocks have been soaring over the past two years in anticipation of the ruling Australian Labor Party disregarding its 30-year-old “three mines” policy.
The entire country’s uranium industry, which for years has anticipated the day when it could start tapping 24% of the world’s uranium reserves, couldn’t wait for this day to come.
Now, the day has come and gone and thousands of investors and newly formed uranium exploration companies wished they would have thought otherwise. The vote to disregard Australia’s “three mines” policy did win by a slight 205 to 190 majority, but there’s a lot more to the story.
Thanks to the slim victory, Australia’s six states and two territories are now free to authorize uranium mining within their local borders. But opening up Australia is hardly the goal of local governors.
According to ABC News, “[The state of] Western Australia’s Premier Alan Carpenter says there will be no uranium mining in his state while he is in government.”
Not to be left out, New South Wales’ premier, Morris Iemma, said, “Labor's decision to overturn its ban on uranium mines would have no effect in New South Wales.”
And most of the other states feel the same way. Clearly, there isn’t much support for disregarding the “three mines” policy. And now, the highly speculative 90 or so Australian uranium exploration stocks that have been making investors hand over fist for last couple of years, are getting downright crushed.
Those stock certificates, once highly sought-after cash machines, are now overpriced worthless pieces of paper. The majority of local governors are dead set against any uranium mining in their territories and they’re not going to allow it.
But it’s not like there is no opportunity here. Two states have already bucked the trend and quietly disclosed their support for uranium mining. You see, these two states know how safe uranium mining is and have already earned the support of their local constituents. The reason is because they’ve been mining for uranium in these two states for more than 20 years.
But here’s the kicker: They’re not writing licenses to every uranium mining company just because they asked for one. The state regulators will only be giving the go-ahead to a couple of them. And only those uranium exploration companies that managed to secure properties adjacent to the already existing three mines are going to pay off.
Invest in the rest them, and you might as well be throwing your money in the trash.
Right now, I’ve found one small exploration company that will be one of those few big winners. Right now, it’s quietly sitting on veritable mountain of uranium worth more than $6.7 billion.
And thanks to the across-the-board sell-off in uranium stocks, it’s market value has plummeted to a mere $215 million.
With numbers like that it’s no wonder why Citigroup, UBS, HSBC and JP Morgan have all been loading up on shares of this company. Given the political situation, it’s pretty safe to say shares of this company won’t be hanging around $4 for long.Right now, a select group of investors have already been warned about how to avoid the Aussie uranium bloodbath as well as which stock will be the big winner in this whole debacle, follow this link now to join that group.
Andrew Mickey,
Founder, Small-Cap Commodity Prospector
A 2,600-Year-Old Egyptian Artifact Could Launch This Tiny $2 Stock to $27…
Africa has a $10 billion secret. Right now a U.S mining syndicate has stunned the Kremlin and is seizing a commodity fortune! This is your opportunity…
Because now this Egyptian artifact could launch this tiny $2 Mining company up 1,250% by September 22, 2007! Read on to learn about this incredible profit opportunity…
| |