NewswireToday - /newswire/ -
Sarasota, FL, United States, 2006/09/06 - Despite the price of spot uranium, recently up to $52/pound, private investment manager Mike Halvorson told StockInterview, “So many of these uranium projects will never see a shovel to the ground, they will never see anything close to production.”.
Private investment manager Mike Halvorson told StockInterview.com that when it comes to scoring big winners in the mining sector, “The average investor is going to have a tough time.” Although the high-flying spot uranium price recently touched $52/pound, he warned about novice investors chasing after the hundreds of uranium companies, saying, “So many of these uranium projects will never see a shovel to the ground, they will never see anything close to production.” Highly respected for his early, often prescient, investments in the natural resource sector, Halvorson has made substantial investments in junior uranium companies, such as Kilgore Minerals (TSX: KAU), UR-Energy (TSX: URE) and Strathmore Minerals (TSX: STM), in which he now serves as a director.
Three of Halvorson’s longer term mining investments have recently received takeover bids, or have been taken over: Western Silver taken over by Glamis Gold (May 3rd), Yamana Gold bidding to takeover Viceroy Exploration and Barrick Gold attempting a hostile takeover of NovaGold.
Halvorson also recommended new investors subscribe to a proven investment advisory service, which understands the mining business. He told StockInterview.com he subscribes to Bob Bishop’s ‘Gold Mining Stock Report,’ saying of the newsletter writer, “(Bob Bishop) covers people. He knows a lot of individuals in the industry. One of the gifts, a guy like Bishop has, is he doesn’t try to fit the same model over every company, like a lot of analysts do. He just tries to figure out whether the stock is going up. He has a great network to check facts out with.”
Halvorson was wary of valuations analysts have given some uranium companies, saying, “The (uranium) companies are so new. Some of them aren’t really that acquainted with their own assets, let alone the assets of other companies. It’s not like the oil and gas business where you’ve got … in western Canada , there are a dozen or fifteen blue-chip engineering firms that provide reserve and reservoir evaluations. If you see one of those engineering reports, you can really put a market value on those assets.” Not so with many of the recently formed uranium companies
Stockinterview.com is a rapidly growing online news service, which provides investigative reporting, editorial, analysis and commentary of the nuclear fuel cycle, uranium mining, nuclear power, the environment and the natural resource industry. Over the past three years, the Internet news website has covered the nuclear energy renaissance, the worldwide uranium mining boom and the potential influence of alternative fuel sources on China’s dramatic economic growth.