Peter Brieger
Denison Energy
DEN-T
DON'T BUY
Aug 14, 2006
Feels that uranium is going to be one of the key resources that allows the US to break its hegemony on oil. He has chosen to use Uranium Participation (U-T) instead. This one is far too expensive.
What hurt this company, after the disaster at Cameco (CCO-T) was that they where in line to do some of the milling work at Cigar Lake. This will actually be recovered with much higher uranium prices.
Merging with IUC (IUC-T). These are 2 B companies, putting them together and not getting anything out of them but production growth. Feels uranium prices are going through $100 over the next year or so. Prefers Uranium Participation (U-T).
Has become the uranium play be default with the Cigar Lake mine problems of Cameco (CCO-T), Has production, so is looking better than a lot of the juniors.
106 million pounds mined from ground sources, but 180 million pounds were used last year. The difference has come from warheads, and inventories.
There is a shortage of Uranium.
Denison has a great management team. Has backing of the Lunden family. It owns 2 out of 4 of the mills that can process uranium. Around $12 is a safe bet if you want to hold if for a year.
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