Sunday, April 24, 2016 10:25:34 PM
NXE.V - Poised to go higher but Cameco....
...just shut down Rabbit Lake, eliminating 14% of Canada's Uranium production. This may put some short term pressure on NXE.V - now definitely the world's best Uranium discovery in recent decades with initial resource of 3.48MT @ 2.68% U308 for 202 Mlbs of Uranium at 26.8X the average global mined grade of 0.1%. Cormark calling for next resource announced in H2-2016 to grow to 300-350 Mlbs.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/cameco-suspends-rabbit-lake-operations-cuts-more-than-500-jobs/article29716465/
This is from Cormark (one of best Canadian brokerages that publish research) summarizing their target update on April 15th:
Retain Buy Rating, Increase Target To C$5.00 From C$4.50: We retain our Buy rating and increase our target from C$4.50 to C$5.00. Our target is driven by our new 350 MMlb resource forecast to which we apply a US$3.75/lb in situ value. Post-Fukushima transactions have averaged ~$4.00/lb for high grade assets in the Athabasca basin. We continue to expect NexGen to trade higher as it is currently valued at just $2.83/lb based on the existing resource and just $1.63/lb on our resource forecast.
This is from another analyst comparing size and grade of NexGen's Arrow deposit from April 8th:
Based on spot prices Arrow translates to a 4.6M oz. gold deposit with an average grade of 41 g/t.
NexGen's arrow could be analogous to Goldcorp's Red Lake mine when the final resource is in.
This is the news release that led to NexGen exploding up to $2.80 high it has since come down off of in last week:
http://www.nexgenenergy.ca/i/pdf/news/NR-April-14-2016Ext.pdf
This is current technical situation. This is the best undeveloped Uranium deposit in the World, so it is going higher period. If you can buy in next couple weeks anywhere near the $2.00 level that may be cheapest you ever see again. Expect NexGen to bounce solidly when it does bounce and continue higher.
...just shut down Rabbit Lake, eliminating 14% of Canada's Uranium production. This may put some short term pressure on NXE.V - now definitely the world's best Uranium discovery in recent decades with initial resource of 3.48MT @ 2.68% U308 for 202 Mlbs of Uranium at 26.8X the average global mined grade of 0.1%. Cormark calling for next resource announced in H2-2016 to grow to 300-350 Mlbs.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/cameco-suspends-rabbit-lake-operations-cuts-more-than-500-jobs/article29716465/
This is from Cormark (one of best Canadian brokerages that publish research) summarizing their target update on April 15th:
Retain Buy Rating, Increase Target To C$5.00 From C$4.50: We retain our Buy rating and increase our target from C$4.50 to C$5.00. Our target is driven by our new 350 MMlb resource forecast to which we apply a US$3.75/lb in situ value. Post-Fukushima transactions have averaged ~$4.00/lb for high grade assets in the Athabasca basin. We continue to expect NexGen to trade higher as it is currently valued at just $2.83/lb based on the existing resource and just $1.63/lb on our resource forecast.
This is from another analyst comparing size and grade of NexGen's Arrow deposit from April 8th:
Based on spot prices Arrow translates to a 4.6M oz. gold deposit with an average grade of 41 g/t.
NexGen's arrow could be analogous to Goldcorp's Red Lake mine when the final resource is in.
This is the news release that led to NexGen exploding up to $2.80 high it has since come down off of in last week:
http://www.nexgenenergy.ca/i/pdf/news/NR-April-14-2016Ext.pdf
This is current technical situation. This is the best undeveloped Uranium deposit in the World, so it is going higher period. If you can buy in next couple weeks anywhere near the $2.00 level that may be cheapest you ever see again. Expect NexGen to bounce solidly when it does bounce and continue higher.
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