Halvorson discussed his other uranium holdings, “I was a fairly substantial shareholder of UR-Energy, but you can’t own all your stocks all the time. They had a very good market so I left.” He noted those were his three substantial holdings and that he also has minor holdings elsewhere. One of those holdings, Santoy Resources, comes from his association with Ron Netolitzky, who is also a director of Viceroy. “There’s not anybody who’s got a better track record than Ron of recognizing an economic deposit early,” Halvorson said of his long-time acquaintance. “Ron worked in the uranium field in the 1970s and 1980s, as well as the gold sector, so he knows all about uranium exploration.”

Of the sector, Halvorson believes there is more consolidation ahead with the quality uranium companies. “Some of these guys have got pretty rich valuations, such as SXR Uranium One with their pricey currency and extremely strong market support from Europe and Canada,” he told us. “Because of their market cap, they’re big enough that they can use their currency and do acquisitions.” He spoke highly of SXR Uranium One, “I’ve been to their main project in South Africa. They’re building it. It’s happening. They will be mining. And they are miners.”

And that’s the big difference, going back to his comment about some projects which will never see a shovel in the ground. “How do you compare Denison to some of these other companies?” he asked. “That’s part of the difference. Denison looks like it’s priced through the stratosphere, but they are mining. I think if Strathmore Minerals, which is sort of undervalued right now, if we could get Church Rock producing, I think there would be a huge revaluation.”

He sees a bright future ahead for the mining sector, and believes investors can do well if they study companies before investing in them and get the right advice. “For people coming new to the market, I would look for undervalued stocks,” Halvorson advised. “I would probably take a portfolio approach. I wouldn’t buy just one. I would buy several.”

Halvorson expects more consolidation in the uranium sector. “As the companies get more comfortable with everybody else’s share price, and also getting more comfortable with other people’s assets, then you will see people saying, ‘We can use our shares as currency because we’re trading at roughly our Net Asset Value (NAV), but this company is trading at a discount of 30 percent to their NAV. So, if we can do a transaction with them, it’s going to be accretive.’”

That’s not the case right now, though. “You’ll hear companies talking about this wonderful asset they’ve got,” he said. “Then, I’ll go ask somebody I know in the business about the play, and he might say, ‘Oh god, I don’t like that.’ Right now, I don’t think people have any way of judging a lot of these properties. If you remember the analogy I used in the oil and gas business, where you have companies trading properties all the time, it’s because people can rely on engineering.”

Page 3 of 4 :: First | Last :: Prev | 1 2 3 4 | Next