🕐18.11.11 - 10:27 Uhr

URANIUM RESOURCES - BUY NOTE



[cid:image001.jpg@01CCA5D3.5F58F650] Morning Comment 18 November 2011 Uranium Resources PLC (URA.L)# 2.20p (2.15p-2.25p) Market Cap: �13m (52-Week: High: 6.00p Low: 1.87p)
Final Results Statement Uranium Resources (URA) this morning announced its final results in which investors were updated on progress on its main exploration programmes in Tanzania.

Drilling work on the Groups flagship exploration property at Mtonya is continuing on a 8,000 metre programme.

Initial results as revealed back on 20 October 2011, continue to be favourable and confirm the managements strong view that a laterally-extensive roll-front mineralisation is present at Mtonya.

Such a uranium bearing formation opens up the potential for an in-situ production method, which is not only economic, but also environmentally benign.

In-situ extraction techniques can be typically found in North America and Kazakhstan.

The management believe the thickness and grades of the mineralisation strata could be similar to the world class discoveries made at Nyota and Kayelekera.

On other Group projects it is interesting to note the potential for the discovery of rare earth elements at Ruvuma, in addition to uranium.

At URA we look forward to further results from current exploration at Mtonya in the coming months, which could then lead to a resource-definition programme to help move the project up the development curve. Recommendation Despite excellent progress being made on the ground by URA, the stock is trading way below its 52-week high of 6.00p reached earlier this year.

Uranium stocks are still suffering from the knee jerk reaction of the unfortunate Fukushima nuclear incident back in March which caused some countries to rethink their nuclear plant building plans.

It must be remembered that key nuclear plant developers such as China, which account for over 40% of reactors currently being built in the world, are still committed to an aggressive nuclear building programme to replace their unsustainable dependency on fossil fuel power.

With the memory of Fukushima starting to fade amongst investors and industry participants, uranium spot prices and uranium stocks may soon move up and those companies with the potential to discover and/or exploit world class uranium deposits such as URA could well be key beneficiaries of such a rally.

To this end, we believe the stock offers excellent rebound potential and therefore continue to recommend Uranium Resources as a Buy. # Optiva Securities act as joint broker to Uranium Resources Jason Robertson | Analyst/Corporate Broker D: +44 (0)20 3137 1906 | M: +44 (0)7751 380985
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