First Uranium, FIU.to C$4.20
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Posted: Monday Jun 11 11:52:30AM 2012
Sold 3/4 of my position today at C$.24 to get my initial capital back. Will ride 1/4 free shares to see what happens to FIU.to. Conflicting info today. Big institutional shareholder said he would vote yes based on increased distribution to shareholders AND lack of time to see if other offers could materialize.
This info sent the stock from C$.16 to C$.255 in a short time.
10.1 million shares traded.
Posted: Saturday Aug 15 7:12:34PM 2009
Posted a big loss for Q1 2010 due to low mine output and currency translation. The rampup at both mines is continuing but it will be a gradual process to get both mines producing both gold and uranium at capacity.
In addition to the above qtrly report, they also gave revised guidance:
Posted: Friday Jul 3 9:29:27PM 2009
Added a few hundred more FIU.to today at 4.09.
Forgot to mention in my previous post that FIU raised money by selling 25% of their gold output to Gold Wheaton. I reduced their gold production numbers according already but should have mentioned it. They will get $400/oz or about their cost of production so I just subtracted the 25% from their forecasted gold production in 09 and 2010.
Posted: Saturday Jun 27 12:20:06PM 2009
I bought FIU.to this week at C$4.20. I expect this stock to appreciate over the next 12-18months to a multi-bagger. Bobwins
First Uranium is a unique producer of uranium and gold. They recently reported a cost overrun on their Mine Waste Solutions project which caused a major drop in the share price. Total capex rose from 254million to 322million. While not a positive, when both MWS and Ezulwini are operating, FIU will produce 231,000oz of gold and 752,000lbs of uranium. These figures are both lower than originally estimated,hence the disappointment.
Cash costs are $349/oz for gold and $25/lb so FIU will have healthy cashflow from production. In 2011, uranium production will rise sharply to 1,796,000 lbs and gold will rise to 427,000 oz.
That should lead to cashflow of 153million in 2010 and 297million in 2011. That should translate to
$.73/share in 2010 and $1.44/share in 2011.
There are very few profitable gold producers and only a handful of profitable uranium producers.
FIU is currently not profitable due to the construction but should be ramping up thru the rest of the year. Current market cap is 636million using outstanding share count of 151.7 million and 695million using the FD share count of 165,538.
Cashflow multiples are generally high for both gold and uranium producers so I would expect FIU to trade for 10X cashflow in FY 2010 and closer to 20X 2011 totals.