3SOF

Ready for some more....... Are you ready to Rumble ? 
Chart looks great.
MACD holding nicely above centerline. Back above the 13-day MA,
bouncing off the 50-day MA
Symmetrical Triangle (continuation) Pattern...Ready for the BreakOut !!


52wk Range: 2.16 - 7.92
Volume: 1,099,671
Avg Vol (3m): 138,434

Technicals
Percentage Gainer
MACD is Bullish
Stochastic is Bullish

Last Price Quote is:
7.85%above 13-day MA
12.66%above 50-day MA
RS Rating: 87 

Fundamentals
Key Data:
Market Cap (M): $550.50 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Press Release Source: Uranium Resources, Inc.


Uranium Resources, Inc. to Acquire Mill Site and Uranium Properties holding 20 Million Pounds U3O8 from BHP Billiton
Friday October 12, 6:59 am ET 
NRC-licensed site could reduce development lead time by four to five years
Opens the door to re-start conventional uranium mining in New Mexico


LEWISVILLE, Texas--(BUSINESS WIRE)--Uranium Resources, Inc. (NASDAQ: URRE - News; "URI" or the "Company") announced today that it has entered into a definitive agreement with BHP Billiton to acquire 100% of the ownership of Rio Algom Mining LLC ("Rio Algom"). Under the agreement, URI will pay BHP Billiton $110 million in cash and assume certain retirement benefits and reclamation liabilities of which up to $35 million will be pre-funded at closing. URI will also pay BHP Billiton $16.5 million contingent upon the receipt of a license from the Nuclear Regulatory Commission (NRC) to construct and operate a conventional uranium mill. The transaction is expected to close on or before June 1, 2008 and is subject to customary closing conditions, financing and regulatory approvals.


The purchase includes a strategically important NRC-licensed mill site with associated water rights in the historic Ambrosia Lake District of New Mexico. Located 20 miles north of Grants, NM, the site could cut in half the time needed to build a new mill in the district versus building a mill on a green field site. In addition, URI will acquire 14,000 acres of surface fee land and mineral interests in Ambrosia Lake that contain 20 million pounds of mineralized uranium materials based upon a report by Behre Dolbear, an international mineral industry consultant to the Company. The Company will also acquire a licensed mill site south of Moab, Utah.

"The purchase of Rio Algom provides one of the key assets we need to achieve our strategic goal to produce 10 million pounds of U3O8 per year by 2014," commented Dave Clark, URI's President and Chief Executive Officer. "We believe building a new mill on a NRC licensed site with associated water rights could allow production to begin within four to five years."

Mining at Ambrosia Lake began in the 1950s when Kerr-McGee constructed what was at the time the largest operating mill in the U.S. At its peak, the mill processed 7,000 tons of ore per day. The mill was dismantled in 2003.

After the acquisition, URI plans to construct a new environmentally-sound, state-of-the-art milling facility at the Ambrosia Lake site to process uranium ore that is mined from around the region. The planned mill is expected to employ over 200 people once in operation, and will have the capacity to process up to 8,000 tons of uranium ore per day. When commissioned, the mill will be capable of processing all of the remaining conventional ore in the Grants Mineral Belt, which could total 200 to 300 million pounds U3O8, including up to 70 million pounds of uranium from URI-owned projects. Over the next several months, URI plans to evaluate various opportunities for joint venture and/or toll milling arrangements with several companies who could benefit greatly from a local-operating mill.

"Every aspect of the new Ambrosia Lake mill will be planned and designed with the safety and well-being of the environment, the community and our future employees in mind," said Clark. "Not only will the mill have a tremendous positive impact on the local and regional economies, it will also be a significant benefit to other uranium mining companies who require a licensed conventional mill to advance their own projects toward production."

The acquisition positions URI at the forefront of New Mexico's uranium-mining resurgence. Upon completion of the acquisition, URI will own approximately 112 million pounds of mineralized uranium materials in New Mexico. And, upon receipt of the license amendment from the NRC, URI will possess the only two NRC licenses associated with uranium mining and milling in the state. In total, the transaction will increase the Company's New Mexico asset base by 22%.

"URI is proud to be paving the way for future uranium mining projects in New Mexico," added Clark. "We are committed to responsible development practices in advancing both our ISR and conventional projects, and we look forward to working together with local and state government leaders, community members and other key stakeholders in bringing the economic benefits of uranium mining back to New Mexico."

Advisors

CIBC World Markets Corp. is acting as exclusive financial advisor for URI. Baker & Hostetler is acting as legal advisor for URI.

Conference Call and Webcast Information

URI is hosting a teleconference and webcast today at 10:00 a.m. ET to discuss the acquisition. The URI conference call can be accessed by calling 201-689-8562 and asking for the Uranium Resources, Inc. conference call approximately 20 minutes prior to the call.

Alternatively, the call will be webcast and can be heard from the Company's website at http://www.uraniumresources.com. Participants should go to the website 10 - 15 minutes prior to the scheduled conference in order to register and download any necessary audio software.

An investor presentation which includes details regarding the acquisition will also be available on the website prior to the call.

An archive of the teleconference can be heard by calling 1-201-612-7415 and entering account number 3055 and conference ID number 258098. The telephonic replay will be available from 1:00 p.m. ET the day of the teleconference until 11:59 p.m. October 19, 2007.

The archived webcast will be available at http://www.uraniumresources.com. A transcript will also be posted, once available.

ABOUT URANIUM RESOURCES, INC.

Uranium Resources, Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas, where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and approximately 92 million pounds of uranium in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI's strategy is to capitalize on the strong global market for uranium by fully developing its resource base in Texas and New Mexico, acquiring new assets and pursuing joint ventures or partnerships.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the Company's mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for properties in South Texas and New Mexico, planned dates for commencement of production at such properties, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price of uranium, weather conditions, operating conditions at the Company's mining projects, government regulation of the mining industry and the nuclear power industry, the world-wide supply and demand of uranium, availability of capital, timely receipt of mining and other permits from regulatory agents and other factors which are more fully described in the Company's documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.



Contact:
Investors:
Kei Advisors LLC
Deborah K. Pawlowski / James M. Culligan,
716-843-3908 / 716-843-3874
[email protected] / [email protected]
Or
For Uranium Resources, Inc.
David N. Clark, President and CEO, 361-883-3990
or
Media:
Kristin Simons, 505-888-5877 / 505-363-1496
[email protected]

--------------------------------------------------------------------------------
Source: Uranium Resources, Inc.

AP
Uranium Resources Buying BHP's Rio Algom
Friday October 12, 7:48 am ET 
Uranium Resources to Buy New Mexico Uranium Mining Company, Mill License From BHP Billiton


LEWISVILLE, Texas (AP) -- Uranium Resources Inc. agreed to buy a uranium mining company and a mill license from BHP Billiton Ltd. for about $126.5 million in cash.
Uranium Resources said it will pay $110 million for Rio Algom Mining LLC, whose assets include New Mexico properties with 20 million pounds of U308 uranium ore. The company will pay $16.5 million for a Nuclear Regulatory Commission license to build and operate a conventional uranium mill.

 
Uranium Resources will also assume certain retirement benefits and reclamation liabilities of which up to $35 million will be pre-funded at closing.

"The purchase of Rio Algom provides one of the key assets we need to achieve our strategic goal to produce 10 million pounds of U3O8 per year by 2014," said Dave Clark, Uranium Resources president and chief executive. "We believe building a new mill on an NRC licensed site with associated water rights could allow production to begin within four to five years."

The deal is expected to close before June.

Uranium was milled at the site beginning in the 1950s, when Kerr-McGee what was then the biggest operating mill in the U.S. It was dismantled in 2003.

Uranium Resources plans to build a new milling facility to process uranium ore mined from around the region. The planned mill is expected to employ over 200 people and will have the capacity to process up to 8,000 tons of uranium ore per day.

Head and Shoulders Bottom (Reversal) Pattern...

Start another uptrend, waiting for a breakthrough to the upside....
Seems to me that it is perfectly poised for take off.
As it has corrected to long term up trendline and is also at strong support.

Support @ $10.44...10.10...9.82
Resistance @ $11.11...11.40...11.81

Technicals
Close Above the 13-day MA
MACD - Bullish
Percentage Gainer

Last Price Quote is:
12.32%above 13-day MA
16.83%above 50-day MA
RS Rating: 28 

Fundamentals
Key Data:
Market Cap (M): $473.06 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

  BreakOut

Friday's closing chart.......

Has been up as much as 50% in the after hours.......

URANIUM RESOURCES (NasdaqGM:URRE)   
After Hours: 15.00  +$2.55 or (+20.48%) as of 6:44PM ET on 10/31/07


Technicals
Last Price Quote is:
13.45%above 13-day MA
27.52%above 50-day MA
RS Rating: 95 

Fundamentals
Earnings Expected on Nov 9

Key Data:
Market Cap (M): $616.81 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Technical sign positive.......
There's a Cup with Handle, after studying the chart more.
This morning , Volume @ 181,991...+7.10%

Technicals
Last Price Quote is:
5.84%above 13-day MA
20.16%above 50-day MA
RS Rating: 96 

Fundamentals
Earnings Expected on Nov 9

Key Data:
Market Cap (M): $633.01 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Absolutely taking off here.......
BreakOut from Cup !


Technicals
Record Price High
Percentage Gainer

Last Price Quote is:
23.80%above 13-day MA
40.55%above 50-day MA
RS Rating: 98 

Fundamentals
Earnings Expected on Nov 9

Key Data:
Market Cap (M): $633.01 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Quote from: setravis on October 13, 2007, 04:45:05 AM
Head and Shoulders Bottom (Reversal) Pattern...

Start another uptrend, waiting for a breakthrough to the upside....
Seems to me that it is perfectly poised for take off.
As it has corrected to long term up trendline and is also at strong support.

Take off she did.......


Technicals
Last Price Quote is:
7.10%above 13-day MA
23.11%above 50-day MA
RS Rating: 97 

Fundamentals
Key Data:
Market Cap (M): $685.81 
P/E Ratio: 18.36 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Uranium Resources, Inc. Reports $10.4 Million in Revenue.......

LEWISVILLE, Texas, Nov 09, 2007 (BUSINESS WIRE) -- Uranium Resources, Inc. (URRE, Trade) ("URI"), a uranium exploration, development and mining company, announced today its financial results for the third quarter of 2007, which ended September 30, 2007.

Revenue for the third quarter of 2007 increased 275.6% to $10.4 million compared with $2.8 million during last year's third quarter. During the quarter, URI sold 127,800 pounds of uranium at an average sales price per pound of $81.25, compared with 70,000 pounds in last year's quarter at an average sales price per pound of $39.54. Sales were also up from the 114,400 pounds sold at an average price of $69.63 per pound in the trailing second quarter this year.

Net income for the third quarter of 2007 was $2.2 million, or $0.04 per diluted share, compared with a net loss of $6.0 million, or $0.12 per diluted share, for the same period in 2006. Last year's quarter included a $3.3 million charge for the impairment of uranium properties.

The average cost of pounds sold in the third quarter of 2007 was $26.80 compared with $29.44 in the trailing second quarter and $56.92 in the third quarter of 2006. Cost of sales includes operating expense and depreciation, depletion and amortization (DD&A), but excludes royalties and commissions. Finished uranium inventory was 65,800 pounds at September 30, 2007, held at an average cost of $30.60 per pound.

URI produced 103,800 pounds of uranium during the third quarter of 2007, a 43% increase over 72,600 pounds produced during last year's third quarter and a 23.6% sequential decline from 135,800 pounds produced during the second quarter this year. The production decline from the trailing quarter was due to diminishing production at the Company's South Texas wellfields as they near the end of their natural production cycle as well as an inability to bring on new wellfields due to weather related delays. The Company expects production from the next South Texas wellfield to begin in December. Production costs for the quarter were $28.41 per pound compared with $59.14 per pound in the same quarter of 2006. Production costs include operating expense and DD&A.

Production for the third quarter of 2007 was comprised of 5,800 pounds from Vasquez and 98,000 pounds from Kingsville Dome. Production in the third quarter of 2006 included 26,100 pounds from Vasquez and 46,500 pounds from Kingsville Dome.

The cash balance at September 30, 2007 was $13.9 million, down from the balance of $16.5 million at the end of June 2007. The reduction was largely attributed to the funding of increased financial surety requirements during the third quarter for the Company's South Texas facilities and resulted in a $2.5 million increase in restricted certificates of deposit during the quarter.

Dave Clark, President and Chief Executive Officer of Uranium Resources, noted, "We are pleased to have lowered our Texas production costs over the past year and should exceed our minimum production plan of 400,000 in 2007. However, we continue to be hindered by heavy rain in South Texas that has delayed the startup of new wellfields. Production for the year is now expected in the range of 410,000 to 430,000 pounds. Production in 2008 and 2009 is still expected to be in the range of 400,000 to 500,000 pounds per year."


 

Nine-Month Review

Revenue for the first nine months of 2007 was $22.9 million, a 304% increase from $5.7 million during the same period in 2006. URI sold 321,900 pounds of uranium, at an average selling price of $71.22, during the current nine-month period, compared with 199,900 pounds, at an average selling price of $28.41, during the comparable period of 2006.

In the first nine months of 2007, URI produced 348,600 pounds of uranium compared with 187,400 pounds of uranium in the first nine months of 2006. Of this production, 70,300 pounds were from Vasquez and 278,300 pounds were produced at Kingsville Dome. The 2006 production included 117,400 pounds from Vasquez and 70,000 pounds from Kingsville Dome, which began production in last year's second quarter. Production costs for the nine-month periods of 2007 and 2006 were $30.05 and $47.99, respectively.

Net income for the nine months ended September 30, 2007 was $1.9 million compared with $24.1 million in last year's nine-month period. Earnings in 2006 included a non-cash gain on derivatives of $34.8 million.

Outlook

Dave Clark concluded, "While we continue to generate cash from our Texas operations we are also making significant progress to advance toward production in New Mexico. The recently announced plan to acquire Rio Algom with its NRC-licensed mill site has opened the door not only for production from our New Mexico assets, but also for others who own uranium assets in the area. We have begun fruitful discussions with multiple parties who have all expressed a strong desire to participate in a regional mill. We are planning to proceed in a manner that is of greatest benefit to our shareholders.

The Rio Algom acquisition is a major step forward toward achieving our strategic goal of becoming a 10 million pound producer by 2014. The additional 20 million pounds of mineralized uranium material also supports our strategic goal to build our reserve base to 200 to 300 million pounds of uranium."

Teleconference and Webcast

The Company is hosting a teleconference and webcast at 11:00 a.m. ET. Friday, November 9, 2007. During the teleconference, Dave Clark, President and Chief Executive Officer, will review the financial and operating results for the period and discuss URI's corporate strategy and outlook. A question-and-answer session will follow.

The URI conference call can be accessed by calling (201) 689-8562 approximately 20 minutes prior to the call and asking for the Uranium Resources third quarter earnings conference call.

Alternatively, it can be listened to at the Company's website http://www.uraniumresources.com. Participants should go to the website 10 - 15 minutes prior to the scheduled conference in order to register and download any necessary audio software.

An archive of the teleconference can also be heard by calling (201) 612-7415 and entering passcode 260090. The telephonic replay will be available from 1:00 p.m. ET the day of the teleconference until 11:59 p.m. November 16, 2007 by entering passcode 260090 and account number 3055. The archived webcast will be at http://www.uraniumresources.com. A transcript will also be posted once available.

ABOUT URANIUM RESOURCES, INC.

Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and almost 100 million pounds of uranium in New Mexico. The Company acquired these properties over the past 20 years along with an extensive information database. URI's strategy is to capitalize on the strong global market for uranium by fully exploiting its resource base in Texas and New Mexico, acquiring new assets and through joint ventures or partnerships.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the Company's mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for properties in South Texas and New Mexico, planned dates for commencement of production at such properties, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price of uranium, weather conditions, operating conditions at the Company's mining projects, government regulation of the mining industry and the nuclear power industry, the world-wide supply and demand of uranium, availability of capital, timely receipt of mining and other permits from regulatory agents and other factors which are more fully described in the Company's documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.


SOURCE: Uranium Resources, Inc.


Investors: 
Kei Advisors LLC 
Deborah K. Pawlowski/James M. Culligan 
716-843-3908/716-843-3874 
[email protected]/[email protected] 
or 
Company: 
Uranium Resources, Inc. 
David N. Clark, 361-883-3990 
President and CEO 
or 
Media: 
Kristin Simons 
505-888-5877/505-363-1496 
[email protected] 

Copyright Business Wire 2007
 

Sector Watch: Nuclear power stocks.......
Jun 11, 2008 6:20am EDT 

The nuclear power industry may reap a multi-billion dollar windfall if new legislation passes that imposes regulatory limits on carbon dioxide emissions from power plants. Emissions-free nuclear power facilities would benefit, as would nuclear fuel suppliers Uranium Resources, Inc. (Nasdaq:URRE) and USEC, Inc. (NYSE:USU).

USEC Inc. supplies uranium fuel to commercial nuclear power plants worldwide. This company operates the only uranium enrichment facility in the United States and supplies fuel to more than half the U.S. market and one-quarter of the world market. USEC also performs contract work for the U.S. Department of Energy; it maintains two uranium processing plants, transports nuclear materials and provides nuclear fuel cycle consulting.

Demand for enriched uranium will likely rise if Congress votes to limit carbon dioxide emissions under a so-called "cap and trade" system. The intent of the program is to cut greenhouse gas emissions 65% below 1990 levels by 2050. As part of this program, the Environmental Protection Agency will create 125 billion purchasable emission allowances, enough for all 38 years of the program, which is scheduled to commence in 2012.

Nuclear facility operators will benefit in two ways. First, since nuclear plants do not emit carbon dioxide, these plants will not be required to purchase emission allowances, giving them a major cost advantage over coal-powered plants. Second, to recover emission-allowances costs, coal-fired utilities would be forced to jack up electricity rates. As a result, nuclear plants would enjoy higher prices for their electricity without higher costs. Finally, carbon emissions penalties would make the economics of developing a new nuclear plant more attractive.

At present, there are some 439 nuclear reactors operating worldwide. Another 33 are under construction and 94 new plants are scheduled to come online over the next five to 10 years. These plants currently consume some 79,000 tons of uranium each year, but each new gigawatt of capacity will require 195 tons of additional uranium production.

The majority of reactors served by USEC are refueled on an 18- to 24-month cycle, and most of the company's customers refueled in 2007. As a result, USEC anticipates lower 2008 sales and volume more heavily weighted toward the end of the year. The company expects 2009 sales volume to meet or exceed record 2007 levels. Revenues rose 4% to $1.9 billion in 2007 from $1.6 billion in the prior year and net income was $96.6 million, or $1.04 per share, in 2007, versus $106.2 million, or $1.22 per share, in 2006.

First-quarter 2008 revenues of $343.3 million were 26% lower than prior-year levels of $465 million. First-quarter 2008 net income fell to $4.4 million, or $0.04 per share, from $39.3 million, or $0.45 per share, one year earlier. For full-year 2008, USEC anticipates revenues approaching $1.3 billion and net income in a $25 million to $45 million range. Analysts forecast 2008 per-share earnings at $0.32 and 2009 per-share earnings at $0.93. Long-term growth is forecast at 20% annually. These shares appear modestly priced at an 11 times P/E multiple and a 7 times forward P/E multiple. My $9 price target for USEC suggests a 44% premium over Tuesday's closing price of $6.23. Shares have ranged between $3.15 and $22.57 over the last 52 weeks.

Uranium Resources mines uranium properties and has produced over 7 million pounds of uranium since 1997. While currently producing only from its Texas properties, Uranium Resources believes its future lies with its development-stage New Mexico properties, which are estimated to contain more than 100 million pounds of uranium. Uranium Resources is also acquiring new assets through joint ventures and partnerships.

In 2007, the company produced 416,700 pounds of uranium, up from 259,100 pounds in 2006. Sales prices averaged $71.61 per pound last year and $32.63 per pound in the prior year. Reflecting these production gains, the company's revenues tripled in 2007 to $31.1 million from $8.6 million in 2006. Although 2007 net income fell to $1.1 million, or $0.02 per share, from $21.5 million, or $0.42 per share, in the prior year, this was due to non-cash gains on derivatives totaling $31.5 million in 2006.

Uranium Resources benefits from a long-term outlook for rising uranium prices. Uranium supply is expected to fall short of demand by as much as 500 million pounds by 2016 and experts are forecasting $95 per pound uranium prices within a few years.

During the first quarter of 2008, Uranium Resources sold 81,000 pounds of uranium, up from 79,700 pounds in the first quarter one year ago. Average sales prices rose to $70.66 per pound from $57.41 last year. As a result, the company's revenues grew 25% year over year in the 2008 first quarter to $5.7 million, from $4.6 million. Production was lower, however, at 83,400 pounds this year versus 109,000 pounds last year due to delays in bringing new fields online. Start-up costs for new fields resulted in higher net losses at $1.8 million, or $0.04 per share, this year, as compared with $1.4 million, or $0.03 per share, one year ago.

The good news is that with two new fields coming online and production restarted at an existing site, second-quarter production will likely exceed 95,000 pounds and full-year 2008 production will be between 400,000 and 450,000 pounds. The company anticipates producing at this level through 2009 and completing an acquisition that will extend this production level through 2011.

Uranium Resources expects to begin producing from its New Mexico properties within three years, and predicts the mines will support long-term production and profit growth. Analysts expect Uranium Resources to produce 20% average annual growth over the next five years. My $6 price target is 84% above Tuesday's closing price of $3.26. Over the last 52 weeks, shares have ranged between $2.90 and $14.99.

Indie Research
As Uranium Prices Dip, Pro Investors Bet on a Nuclear-Fueled Rebound
Monday June 23, 9:41 am ET
By the tickerspy.com Staff


The energy markets have been a source of concern for the past decade. Recently, however, those fears have increased as new price targets for crude oil move past $150, some even placing it closer to $200. This has propelled the demand for proven energy alternatives, such as nuclear energy. Unlike other alternative energy options that remain cost inefficient as compared to traditional energy sources, nuclear energy has been a practical energy alternative in many parts of the world.


Despite this bull case for nuclear energy, over the past year, uranium prices have collapsed over -50%, falling from over $130 to under $60 following shutdowns (for a variety of unrelated reasons) at nuclear plants around the world. This dip in demand has taken uranium stocks down as well. However, analysts continue to tout the long-term prospects for nuclear power, which would ignite more robust prices for uranium as demand surges.

With only a handful of U.S.-listed stocks offering exposure to uranium, Pro investor exposure to the sector is limited. Among the firms with larger positions is Schroder Investment Management Group, a London-based asset management giant with $259.6 billion under management. Schroder reported a 5.7 million-share stake in uranium and gold miner Cameco (NYSE: CCJ - News). Schroder also counted a number of other global commodity names among its top holdings, including Petrobras (NYSE: PBR - News, PBR-A - News) and Vale (NYSE: RIO - News). A list of Schroder's top holdings is available at tickerspy.com.

Among Pro investors, Cameco was the most popular uranium company at the end of Q1 with 13 investment firms counting the stock among their top holdings. Cameco is also the most popular uranium stock among tickerspy members. Among other uranium firms, USEC (NYSE: USU - News), Fronteer Development Group (AMEX: FRG - News), Uranium Resources (Nasdaq: URRE - News), Uranerz Energy (AMEX: URZ - News), and Uranium Energy (AMEX: UEC - News) are all followed by tickerspy members.

Pro portfolio performance is based on institutions' top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.

Tap Into the Market Intelligence of Investment Pros & Individual Investors at tickerspy.com: Newly launched by Indie Research, tickerspy.com is a FREE financial website that lets you TRACK multiple stock portfolios, FIND and SHARE the latest news about the companies you follow, and SPY on the portfolios of nearly 2,000 Wall Street institutions and hedge funds and see graphs of their performance. Best of all, find out how YOU stack up against investing legends like Warren Buffett. Try tickerspy.com today!



Technicals
Stochastic - Bullish
Percentage Gainer

Last Price Quote is:
7.87%above 13-day MA
-29.43%below 50-day MA
RS Rating: 4 

Fundamentals
Key Data:
Market Cap (M): $134.42 
P/E Ratio: 307.78 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Bottomed? 
Nice bounce above 13-day MA and appears to have bottomed.

52wk Range: 2.17 - 14.99
Volume: 4,299,709
Avg Vol (3m): 467,748
Market Cap: 204.51M
P/E (ttm): 325.83
EPS (ttm): 0.01
Div & Yield: N/A (N/A)

Technicals
Percentage Gainer

Last Price Quote is:
21.80%above 13-day MA
-14.89%below 50-day MA
RS Rating: 7 

Fundamentals
Key Data:
Market Cap (M): $134.42 
P/E Ratio: 307.78 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A

Uranium Resources Takeover Looms as Stock Price Drops (Update1)

By Kelly Riddell

Sept. 3 (Bloomberg) -- Uranium Resources Inc. is sitting on as much as $7 billion worth of the radioactive mineral and may become a takeover target after the shares plunged 83 percent this year, along with the fuel's price.

The Lewisville, Texas-based company has proven uranium reserves in the state of about 800,000 pounds, plus an estimated 101.4 million pounds of the material in New Mexico, according to a regulatory filing. The deposits could power the world's 438 active nuclear-generating plants for a year.

David Dreman, 72, who oversees $13.7 billion as chairman of Jersey City, New Jersey-based Dreman Value Management LLC, bought 51,060 shares this year, boosting his stake to 4.5 percent. The company's biggest investor, Zesiger Capital Group LLC, also increased holdings, according to regulatory filings.

``Uranium Resources is one of the cheapest uranium stocks out there right now, given its assets,'' said Mark Roach, who runs Dreman's $1.8 billion DWS Dreman Small Cap Value Fund. An increase in nuclear power's appeal as a clean-energy source may raise the company's profile as an acquisition target, he said.

The shares, which reached a record closing price of $14.02 on Nov. 6, closed at $2.18 in Nasdaq Stock Market composite trading yesterday. They may be worth $20 each, based on past acquisitions of companies with similar reserves, said Peter Homans, a hedge-fund manager with Parkman LP in Boston. The fund owns the shares, he said.

Uranium Resources rose 44 cents, or 20 percent, to $2.62 at 9:32 a.m. after earlier climbing to $2.67 for the biggest intraday gain since Aug. 13.

`Meaningful Upside'

``From my perspective, the company has 100 million pounds of proven reserves, which is more than any other American company,'' Homans said. ``The contract price for uranium is somewhere around $70. Multiply that by 100 million and you have a present value of $7 billion. For a stock whose market cap is $100 million, there's meaningful upside.''

Calls and e-mails to Bobby Winters, a managing director at Zesiger in New York, weren't returned. The firm owned 14.2 percent of the shares as of June 30, according to data compiled by Bloomberg.

Uranium Resources trades at half the price of Canadian competitors based on the value of its reserves, analyst Paul Stouse at Rice Voelker LLC of Covington, Louisiana, said in an interview.

Saskatoon, Canada-based Cameco Corp. might acquire the company to strengthen its position as the world's biggest uranium miner, Roach said.

Cameco doesn't comment on acquisition targets before investors are informed, spokesman Gord Struthers said.

``However, we are looking for ways to expand our production and have said we're in a growth mode,'' he said. ``It's a small industry; we've probably talked with every company out there.''

Uranium Resources produced 417,000 pounds of the mineral in 2007 and 196,900 through the first half of this year, the company said. By 2014, new and existing mines in Texas may yield as much as 2 million pounds annually, Chief Executive Officer David Clark, 53, said in a presentation June 4.

As much as 9 million pounds may be mined in New Mexico, Clark said.

Unexplored Land

The company also owns 183,000 acres in New Mexico, 70 percent unexplored, Clark said. As much as 588 million pounds of uranium may be found in the state, he said.

``We plan to become a 10-million-pound-a-year producer,'' Clark said in an interview. ``We have some of the largest reserves in the largest reserve area in the country, in the largest uranium-consuming country in the world.''

Uranium Resources has declined 80 percent since the end of June 2007 as the mineral's price slid by about half from a record $138 a pound. Selling by hedge funds and speculators, who had bet prices would rise with oil, accounted for the drop, said analyst Eric Webb of Roswell, Georgia-based Ux Consulting Co.

Mill Purchase

Dropping prices forced the company to abandon an acquisition of a mill in New Mexico after the deal became too expensive, Clark said. Scrapping the plan was a disappointment to some investors because it delayed production in New Mexico, Homans said.

The company won't meet a forecast of 400,000 pounds of uranium production this year because of aging properties and difficulties extracting the mineral from the Rosita mine in Texas, Clark said in a conference call with investors Aug. 11.

Uranium Resources sold stock at a discount in a private equity offering in May to raise money for exploration and well repair. The sale angered some investors as it diluted the value of their stakes and didn't help save the mill purchase, Homans said.

``The falling price of uranium has taken its toll,'' Clark said in an interview. ``We don't have the same level of interested investors as we had a year ago, but we have seen a rotation to people interested in the long-term fundamentals of the market and those fundamentals remain strong.''

Uranium Demand

Atomic reactors consume about 165 million pounds of uranium worldwide annually. Only 110 million pounds are produced each year, according to the World Nuclear Association, a London-based industry group. The remaining 55 million pounds come from gradually declining sources, including former weapons material. Those stores are forecast to run out by 2013.

The number of reactors may expand to 740 worldwide by 2030 as China and India build new plants and other countries increase their use of atomic energy, the association said.

Primary uranium supplies would have to triple by that date to meet predicted demand, the association said. New producers will be needed or current suppliers will have to add capacity through acquisitions, said Justin Reid, a mining analyst at Cormark Securities Inc. in Toronto.

Navajo Land

Uranium Resources has been unable to extract ore from a section of its 2,200-acre Church Rock property in New Mexico because of a dispute over the authority to issue a mining permit. The U.S. Environmental Protection Agency ruled last year that the Navajo Nation and not the state has jurisdiction, the company said in a statement.

It could begin producing 1 million pounds of uranium a year within the next 18 months if an appeal is successful, the company said. The case will continue if the court sides with the EPA.

The U.S. Court of Appeals for the 10th Circuit in Denver may rule in the next three to six months, Homans said.

``These are just bumps in the road,'' Roach said. ``The company is an asset play and management is doing all of the things it should to build shareholder value. Wait for uranium prices to recover. This will be a stock to own.''

The case is HRI, Inc., v. EPA, 07-9506, U.S. Court of Appeals for the Tenth Circuit (Denver).

To contact the reporter on this story: Kelly Riddell in Washington at [email protected].

Last Updated: September 3, 2008 09:45 EDT

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