Liberty Star Uranium and Metals Corp (LBSR)

[StrengthenNumbers]

Fear is mostly irrational...





...and that goes double for the LBSR investors scared of big, bad Obama. A second Obama term most certainly does not imply doom for the sector or LBSR. While I am not a huge fan of the current prez for some other reasons, the administration has fast tracked some minerals development, including coal and oil, much to the dismay of the greenies in his base. I think they are being somewhat pragmatic in the face of daunting economic realities, and will be hesitant to engage in a p***ing match with PLP.

If he gets a second term, some legacy work will be in order, and saving the jobs numbers before 2016 will be high on the list. Remember, Alaska will face a monster lawsuit if they leased those claims for decades and refuse to permit. Also note that we now have the Native American Corporation aligning interests with LBSR, which will put tremendous pressure on the EPA and the state to find an equitable solution. Ultimately this will be a state's rights issue in a state that has historically allowed huge amounts of mineral extraction over many years, a state that has endured environmental catastrophes and continued producing valuable minerals for export, all the while funneling rebates down to the citizens to give everyone a reason to play ball.

LBSR will not be done in by Obama or the EPA. Briscoe has shrewdly brought in the native interests, who may very well be the folks who provide the next round of financing. I wouldn't call the current administration mining-friendly, but this is not a fight they need, as there is little political gain in opposing states rights and being framed as a job killer. Clearly they are already willing to ignore some environmental interests for political points (see links), so why would they reverse that policy once re-elected? Without the need to rally the base and get elected again, I suspect the administration will be looking at finding a way to not leave office under double-digit unemployment numbers. Time will tell, but I would wager that Obama will get a second term, and that LBSR shareholders will get a fantastic ride either way.

http://money.cnn.com/2012/06/26/news/economy/arctic-drilling/index.htm

http://wvgazette.com/News/201202160210