Where is the director of Neal Fronman, who runs SXR Uranium One in the United States? "I think our focus at this stage is primarily Wyoming, Utah and Arizona for the breach of the breach," Froneman said. "New Mexico is an area I do not know well, it's not an area that we could focus on." His focus will be Wyoming, for those companies that want to become candidates for downloading the SXR. "I'm very positive about Wyoming," he said. "I think it will become a significant Uranian province. I even included this point in my presentation.
Coming from Neal Fronman, it's pretty much a confirmation for Wyoming. His Dominion uranium project in South Africa may be one of the largest undeveloped deposits of uranium. It can produce around 2.6 million ounces of gold, as by-products. In a review of the Hargrave Hale uranium sector, released on April 20, 2006, SXR 163 million U3O8 code-compatible resources are said to be "roughly the size of the Cigar Lake". Historical estimates (which do not satisfy NI 43-101) reportedly reach up to 275 million pounds of equivalent U3O8 (220 million pounds of uranium oxide and 3.8 million ounces of gold).
We present the project Dominion as a comparison with what Froneman hopes to achieve at Green Mountain. While some predict that the SXR may have problems with Wyoming's features, Froneman takes it with grain of salt. "We are a company that is very proud of putting heavy targets on the table. When we said that we will produce in the first quarter of 2007 from Dominion, here in South Africa, the market was saying, Wow, this is really not possible. It really does.
There was some skepticism about the increase in production to 5 million pounds U3O8 per year in the United States, starting in 2009. "Maybe I was a bit misunderstood there," he admits. "We think we could begin to see some results in 2009. These are preliminary estimates. Let us finish the necessary technical works to confirm these goals and numbers."
By combining the expected uranium production from US operations with SXR's non-North American uranium, estimates show that the company could produce 10 million pounds of U3O8 in the early years of the next decade. Some have already started to call the SXR Uranium One the fifth-largest uranium producer. Is this premature? "One of our goals was to have a property base that has led us to become one of the five largest uranium producers," explained Froneman. "I think we have so far secured a property base that gives us a good opportunity for this title.
One of the fans, Sprott Asset Management Market Stratigent Kevin Bambrough, sent us an opinion on the company's proposed acquisitions, "We are watching the transactions very positively and we consider this additional evidence that we moved from the early stages of exploring this uranium bull market to the consolidation phase which will see revaluation and separation between those who have large potential resources and those who do not.
Has SXR achieved this consolidation at the top of this current stock market? Ultimately, Merrill Lynch Vicky Binns announced in a July 12 report that uranium prices would average 43 USD / pounds this year, about $ 3 / pound less than the current spot rate. And uranium would fall to $ 35 / pound by 2011. "No, I think we're in a long-term fight," Fronman challenged. "We do not pay the price related to the market. We all know that the market has made a very significant adjustment. I can honestly say that I believe we have bought good value." Froneman claimed Sweetwater Mill was sold to a liquid company in the United States to receive market capitalization between $ 400 million and $ 500 million. "I am very pleased with the transactions we have managed to secure," he explained.
"I believe the industry needs to be consolidated," Froneman said. "We have a duty to provide uranium for pure energy, the way in which this will happen is that we will have to do the right business. Again, he throws suggestions on several acquisitions, another one or two mergers.
But all this concluding work comes with a huge price. Together, we calculated the final cost for the SXR Uranium One to launch its new US acquired assets. We asked: Do you look at about $ 500 million for everything? Froneman replied: "Yes, everything is fine, but I want you to be sure to mention my qualification. Only based on preliminary information, we have only enough information at this stage for Sweetwater."
He asked a Toronto brokerage analyst to put a burning question in mind to every analyst, while Neal Froneman talked about his company's strategy, "How much should the drainage be expected?" Fronman suggested that his company had already received bids for financing debt and capital. An analyst pointed out that the SXR had $ 100 million. It can be a concern, but not yet. The company must continue with its due diligence before concluding a contract. But Fronman is optimistic, despite the scary price, "I think the value that will be generated from it will be much higher than that ($ 500 million in costs)." By the way, there was a certain irony as the American listened to Canadian analysts who questioned South African engineers about uranium holdings in Wyoming and Utah.
And if everything goes well, where will the company be until the moment of uranium production in the United States? We asked whether the SXR Uranium One would be listed on the New York Stock Exchange in a few years with a market capitalization of $ 3 billion. Immediately, he replied: "We actually see that much more than that. We think we can not reach NYSE, we could see the $ 2 billion market limit.
He told us it would be inevitable that his company had an American newspaper. "It will make it much easier for our US investors to invest in us," he explained. "I think it will clearly show that we want to be part of the United States not just because of our assets in the United States, but we must also be an American company."
Nevertheless, Neal Fronman remains modest and is considered happy: "What amazes me is that potential is not recognized as it should be. He put us through the post. I am very kind to the United States.
In February last year, we interviewed Wyoming Governor Dave Freudenthal who commented on uranium miners, "Bring us your projects." Almost anyone in South Africa listened. And soon these two gentlemen will probably handle it.
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