Jean-Francois TardifWestern Prospector GroupWNP.VPAST TOP PICKJan 10, 2007
(A Top Pick Oct 26/06. Up 34%.) Uranium play in Mongolia. Got hammered in 2006 because of Mongolia and a lawsuit. If you are willing to take the risks, it is one of the cheapest stocks you can buy.
Both Khan Resources (KRI-T) and Western Prospector (WNP-X) have some nice projects, but there is a lot of political risk in Mongolia. In the past, it has been known to expropriate properties, levy higher taxes, etc.
Asset is located in Mongolia. Russian government had developed the properties, but with low uranium prices, they walked away from the project. Basically, they just have to dewater the workings. Resource is about 55 million lbs. Good grade assets. Capital costs are fairly low. The problem is Mongolia. Waiting to see what happens with Ivanhoe (IVN-T).
Uranium assets in Mongolia and next-door to Khan Resources (KRI-T). Likes both companies. Estimates they have at least 50 million lbs. Just a question of time for the assets to be produced. There is a lawsuit involved.
Very attractive risk/reward. There is a lot of risk because of a current lawsuit by an individual who claims to own the project they are working on. Mongolia had also imposed some special laws regarding taxes. Feels a Mongolian story will be OK as two other major companies are now investing in Mongolia.
Uranium company in Mongolia. Very risky as the government tends to make new tax laws. Rio Tinto (RTP-N) just bought 2 Mongolian projects from Ivanhoe Mines (IVN-T) indicating they're confident this will change. Very cheap.
Good management team. Well financed. Their Mongolian assets look very attractive. They also have some coal assets that no one is talking about. One of the gems in the uranium space.
A strong believer in uranium. His two favourites are International Uranium (IUC-T) and Western Prospector (WNP-X). Western Prospector has some drill results coming out, probably in the first quarter. Very good assets and very good management. Probably one of the prime consolidation candidates in the group.
Uranium will probably have another 20% + performance year in 2006. Liquidity is important in the resource market and this company is not the most liquid stock. Has a lot of volitility. Involved in new developments of uranium prospects and this takes time and needs government approval. Prefers Cameco (CCO-T). OK for a 2/3 year investment.
Prefers junior uranium companies that have deposits that they will try to put into production, such as Paladin Resources (PDN-T), Western Prospector (WNP-X) and Energy Metals (EMC-X)