URZ - Sector: Basic Materials---Industry: Industrial Metals & Minerals

[setravis]

Profile: 

Uranerz Energy Corp.
1701 East E Street
PO Box 50850
Casper, WY 82605-0850
United States - Map
Phone: 307-265-8900
Fax: 307-265-8904
Website: http://www.uranerz.com

Details   
Index Membership: N/A
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Full Time Employees: 11


Business Summary   

Uranerz Energy Corporation, an exploration stage company, engages in the acquisition, exploitation, and development of uranium properties. The company principally focuses on the exploration of its properties in the Powder River Basin area of Wyoming encompassing approximately 119,312 acres, as well as owns interests in properties located in the Great Divide Basin area of Wyoming, Texas and in Saskatchewan, Canada. The company was formerly known as Carleton Ventures Corp. and changed its name to Uranerz Energy Corporation in July 2005. Uranerz Energy Corporation was founded in 1999 and is based in Casper, Wyoming.

[setravis]

(Amex/TSX: URZ) Uranerz Energy - Imminent Final Permit To Commence Construction Of WY, USA Uranium Mine

Uranerz Energy Corporation (Amex/TSX: URZ) (Frankfurt: U9E) is a company in transition. In addition to active uranium exploration and property acquisition programs in the Powder River Basin of Wyoming, USA, the company is now on the cusp of joining a select group of uranium companies worldwide that can call themselves producers.
The timing couldn't be better to be part of this elite group. In 2007 uranium prices topped out at $137/lb. Then after bottoming at around $40/lb. in 2009 with the rest of the market, uranium prices have since been trending higher again. Yellowcake U308 currently trades at $72.50/lb. and a recent report expects long-term prices to average $85/lb.
This Feb. 9, 2011 equity research report by Dahlman Rose & Co. entitled "Increasing Production Provides Attractive Leverage to Spot Uranium" initiated coverage of Uranerz Energy. The report anticipates the company having its last permit in hand over the near-term, and should be ready to commence construction activity soon - as URZ catalysts.
Wyoming is the top U.S. uranium producing state and is a cost effective, safe and friendly jurisdiction to mine uranium compared to some far away lands. U.S. demand is expected to grow under the current administration, as is worldwide demand projected at 200 million pounds annually by the end of this decade.
In Wyoming there are two major permits / licenses required before starting an In-Situ Recovery (ISR) mine to produce uranium:
1.   Federal Nuclear Regulatory Commission (NRC) Source Material License
2.   Wyoming Department of Environmental Quality (WDEQ) Permit to Mine
Management has done an excellent job navigating the complicated permitting process in an efficient and timely manner. On January 4, 2011 the company announced receiving state approval of one of the first new commercial uranium Permits to Mine issued by the WDEQ in almost 20 years.
The approval status of the final NRC Source Material License is expected very soon, a matter of weeks to any day now!
For more on permit related announcements, read the following URZ news releases:
•   November 23, 2010 Uranerz Receives Draft NRC Materials License for Nichols Ranch ISR Project
•   January 4, 2011 Uranerz Receives WDEQ Permit to Mine for Nichols Ranch Uranium Project
•   January 24, 2011 Uranerz Energy Corporation: NRC Determines No Major Environmental Impacts Preclude Licensing of Nichols Ranch ISR Uranium Project
If / when URZ receives this final NRC SML permit, they are expected to break ground around a month later. Construction of the Nichols Ranch ISR Mine is budgeted to cost $35 million, which is less than the company already has in its treasury.
ISR uranium production is currently scheduled to commence mid 2012 and ramp up from there as feedstock from URZ's other properties becomes available. Uranerz is permitting its central processing plant for annual production capacity of 2 million pounds annually.
Nichols Ranch is only the first of 30 uranium projects Uranerz can draw from in the Powder River Basin Wyoming. The company has had significant success increasing its resources through exploration, going from less than two million pounds in 2007 to nearly 20 million pounds measured, indicated and inferred in 2010.




We anticipate further drill campaigns, and look forward to more 43-101 uranium resource updates this year.
And don't forget Uranerz is sitting on $36 million currently, with no debt, plus up to another $12.7 million expected shortly via the accelerated exercise of warrants announced January 26, 2011. I wouldn't be surprised if several uranium property acquisition deals were already in the works to further ramp-up resources.
Then again, why even use cash! The Analyst tab on our Uranerz Energy Stock Research Portal shows a consensus rating for URZ as a Strong Buy ranked 23 out of 110 in its industry. The company's stock has outperformed over the past three months, with URZ up 141% compared to its peer group rise of 65%.
Having a strong stock is surely an attractive bargaining chip; an alternative currency to woo attractive property deals. For that matter, with Uranerz expecting a working mine in a year or so, this especially might be very attractive to uranium resource owners.
The point is that deals can happen in many forms for cash, stock, royalties or any combination of buyout, merger or partnership. Uranerz now has the means and we look forward to property acquisition and other types of deals to grow their resource base and mine life.
Now that Uranerz appears ready to join the exclusive uranium producers club, how are other uranium producers doing? The market currently values Uranerz at $370 million, with the uranium producers below having market caps ranging from $1.5 billion to over $260 billion.
Direct comparison cannot be made as every situation is different and these companies have established operations, including production of various other types of resources. However Uranerz does seem to have blue-sky potential as the newest company on the uranium producers' block.




The market is starting to notice Uranerz! Our URZ Stock Research Portal's Company / (Share Information) tab as of 1/1/11 shows 43 institutions holding 11.20% of the stock. A further 11.70% is held by insiders, with a public float of only 15.25 million shares out of 70.82 million. Here are the top 10 institutional holders and top 6 mutual fund holders of Uranerz Energy Corp.'s common shares:




URZ Summary:
o   Uranerz Energy is a pure-play uranium company, fully leveraged to spot prices that have been trending higher.
o   Focused on Wyoming ISR uranium projects - cost effective, safe and friendly jurisdiction to mine uranium, close to growing demand.
o   Skilled management with experience in financing, permitting, constructing, operating and selling uranium projects worldwide.
o   Advanced projects with established resource base, plus substantial exploration potential.
o   $36 million cash, up-to $12.7 million more via warrants exercise, and no debt.
o   Uranerz received its WDEQ state Permit to Mine last month.
o   Construction of URZ's first ISR uranium mine should commence within weeks of receiving its final NRC SML permit.
o   Nichols Ranch uranium production is currently anticipated for mid 2012.
o   Mine plan is for up-to 2 million pounds per year after initial ramp-up period.
o   Nichols Ranch is the company's first of 30 uranium projects in the Powder River Basin Wyoming, USA.
o   Ongoing exploration and drilling of these nearby properties should add to an already active news flow.
o   43-101 resource updates anticipated later this year - may be developed via permit amendment provisions.
More analysts and institutions may see final permit approval as de-risking event to initiate coverage, and as production starts to evaluate URZ more in-line with its peer producers. Uranerz has successfully transitioned as an exploration play, to the development phase, to anticipated near-term uranium producer. Uranerz strengths provide several options to its property acquisition and deal making quiver - to expand the company's resource base, mine life and overall growth profile.
Word on the company's NRC SML final permit is expected any day!
Watch BNN's recent interview with URZ's CEO @ http://watch.bnn.ca/#clip407515

[setravis]

Uranium: Bounce or Break?

I pay attention to the RSI indicator a lot, and have found that when it stays between the 40-80 area it remains in a strong uptrend. When you combine that indicator with a 50 moving average, you can start to define some areas of potential support.

Here is a link from the very resourceful Tischendorf Letter that highlights just about every Uranium stock you could possibly want, with many in the Canadian markets. The two below that I feel have the strongest potential to bounce are Dennison Mines (DNN) and Uranerz Energy (URZ), due to their relative strength.

http://www.tischendorf.com/2010/10/25/uranium-renaissance-stocks-displaying-incredible-buying-pressure/

Day's Range: 4.81 - 5.09
52wk Range: 0.87 - 5.93
Volume: 1,704,368
Avg Vol (3m): 1,932,080
Market Cap: 326.93M
P/E (ttm): N/A
EPS (ttm): -0.23
Div & Yield: N/A (N/A)

Technicals
Close Above the 13-day EMA
Percentage Gainer

Last Price Quote is:
2.10%above 13-day EMA
12.35%above 50-day EMA
RS Rating: N/A