UEC on the Verge

IAN PARKINSON, CIBC World Markets
"UEC has performed well and is on the verge of producing and selling its first yellowcake. . .The valuation of UEC has moved more in-line with its producing peers, based on the visibility of current production at Goliad and Palangana. Currently, the stock is trading at 1.5x NAV compared its producing peers group at 1.5x NAV (excl DML). First production of yellowcake is expected in the near term, though sales and cash flow are not expected until the middle of 2011. This delay will help establish a stable production base, build inventory and otherwise prove to customers that the supply of yellowcake is secure from Hobson."

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