URANIUM & ALTERNATIVE ENERGY 3

[SAGI]

WELCOME TO THE NEW U&AE THREAD. THE LINK FOR THE PREVIOUS ONE IS HERE FOR REFERENCE FOR CURRENT READERS AS WELL AS FOR NEW READERS. THE LINK WILL TAKE YOU THE PREVIOUS THREAD WHICH ALSO HAS A LINK TO TAKE YOU TO THE FIRST THREAD.
http://www.goldismoney2.com/showthre...ATIVE-ENERGY-2

Thanks
SAGI

[SAGI]

Uranium ban lifted by NSW Parliament
From: AAP March 28, 2012 6:33PM
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LEGISLATION to repeal a ban on uranium exploration has passed through the NSW Parliament, with MPs in the state's Upper House supporting it by 20 votes to 18.

In February, NSW Premier Barry O'Farrell said the state would be stupid to turn a blind eye to the revenue that uranium mining could generate, announcing his government wanted to repeal a 26-year-old ban on exploration.

The legislation passed through the Legislative Council unamended today, despite opposition from Greens and Labor MPs.

"This is great news for NSW. We must look for every opportunity to join the resource boom underway in Western Australia, Queensland and South Australia," NSW Resources Minister Chris Hartcher said in a statement.

"This is a new area of exploration and a new opportunity to create an industry which will give the NSW economy a real boost.


"Overturning the ban on uranium exploration brings NSW into line with all other states, excluding Victoria.

"This sends a message to potential investors in NSW that we are supportive of resource investment."

Separate legislation would be required to lift the NSW ban on uranium mining.

The NSW Greens and environment groups condemned the passing of the legislation, saying the Government had no mandate for uranium exploration.

"The community does not support uranium mining and, over the coming months, the Government will hear this loud and clear," Greens MP Jamie Parker said.

"The O'Farrell Government did not take this policy to last year's election and the public will be horrified that it has overturned this important socially and environmentally responsible protection."

The Nature Conservation Council, Australian Conservation Foundation and Beyond Nuclear Initiative called for an independent inquiry into uranium mining in NSW.

"Premier O'Farrell has said this is not about mining, but about exploration and gathering evidence, so we trust he will support a full, robust and independent inquiry to examine the adequacy of NSW's regulatory regimes, the experience of uranium mining in other jurisdictions and the views of relevant stakeholders," Dave Sweeney from the Australian Conservation Foundation said in a statement.

Chief of the NSW Nature Conservation Council Pepe Clarke said thousands of people had signed a petition calling for the exploration ban to be maintained.

"We urge the Government, Opposition and crossbench MPs to support a full, robust and independent inquiry into the ramifications of opening up NSW to uranium exploration and mining," Mr Clarke said.

NSW Opposition Leader John Robertson said the overturning of the longstanding uranium exploration ban was a broken promise.

"This is a massive backflip by the Premier and represents a huge breach of faith with the people who elected him only 12 months ago," he said.

Mr Robertson said Mr O'Farrell had declared to Parliament in August 2011 that the Government had no plans to allow uranium mining or exploration.

"That declaration has been exposed as a straight-out lie," he said.

[cano]

Sagi,

What's your take on the economic outlook for Europe?

How would inflation affect the price of uranium and also future projects?

Do you still favor Acap over greenland minerals? It sounds like it would be smart investment to load up on both.

Thanks!

[SAGI]

Sagi,

What's your take on the economic outlook for Europe?

How would inflation affect the price of uranium and also future projects?

Do you still favor Acap over greenland minerals? It sounds like it would be smart investment to load up on both.

Thanks!

Hi Cano,
I am a realist and think that Europe is not going to fold up and die tomorrow or next year or even the year after. Give it ten years and I see the EU breaking up. I see Germany striding off on its own, I do see Germany having a lot on its hand in terms of energy policy. I do not see Germany and France seeing Eye to eye.

I still favor A-cap and Greenland, but I need everyones help with any company that we talk about. A hundred eyes are always better than two. Every reader has his own strengths and I would like them to use this strength to analyse these two companies and see what issues can come up. Are we missing something. The price price price! This price not moving up could be just a simple case of missing it or it could be something bigger considering the size of their deposits. Take CZQ.TO into consideration. So yes on the whole I think these two companies have the biggest potential as explorers in Uranium. So why are they not moving. Do you see where I am going with this? Which is why I want to get into greenland at around 35 cents. To reduce my risk.
So give me your views. I appreciate any views.

SAGI

[cano]

http://www.chron.com/business/press-...nd-3451996.php

[SAGI]

TECHNICAL SETUP COMING TOGETHER FOR LONG TERM PLAY IN UUU.TO

The daily charts are showing a convergence of the 100 day SMA and 200day SMA. The 55 day SMA has crossed over the 100day SMA a while back but the price in the last month has come down. The covergence is from the downside up with the 100days SMA below the 200 day SMA. This is a critical moment as we may see two things happen concurrently. On the one side we will see the above occur while at the same time we may see the price in the short term go below the 200 day SMA. UUU should find support above $2.50 and this is where one can place attack capital. The downside is; If it breaks that support area the next support area is just above US$ 2.00. Your input will be appreciated.

SAGI

[cano]

Any thoughts into why the junior mining stocks (gold, silver, etc.) have dropped in the last 2 weeks?

[SAGI]

Any thoughts into why the junior mining stocks (gold, silver, etc.) have dropped in the last 2 weeks?

No idea at all they did begin to go up a little and then collapsed with the markets. It seems day to day or even week to week is not working at the moment. Must look at the monthly charts and see if that paints a better pic for me.

They have to begin moving before the end of this year however I do not see them dropping much further now. They seem to be range bound for the moment.

SAGI

[SAGI]

U@AE PART 2 passes 30000 reads for the very first time. Whooooo hooooooo. I am rather pleased with that. More interest in the thread developing. Hopefully we will surpass 30000 this year too.

SAGI

[SAGI]

Hello everyone,
I will not be able to post the Coffee article as it has not been completed. I apologize for this. The article will be posted sometime mid next week. There is not much news for this week as markets have been consolidating this week.
Have a peaceful Easter weekend.

Regds
SAGI

[cano]

Interesting Q and A a/b why the juniors are lagging. Also mentions why Rare earths are still a good play.

http://www.mineweb.com/mineweb/view/...ail&pid=102055

[Bigfoot]

Any thoughts into why the junior mining stocks (gold, silver, etc.) have dropped in the last 2 weeks?

http://kingworldnews.com/kingworldne...ckenstein.html

[SAGI]

Bannerman in uranium mine JV talks18:19 AEDT Tue Apr 10 2012





Uranium explorer Bannerman Resources is in talks with potential joint venture partners for its $US870 million ($A846.59 million) Etango project in Namibia.

The company on Tuesday said it had completed a definitive feasibility study for the planned mine, concluding that it should operate for at least 16 years.

Bannerman also said it had agreed to sell five per cent of the project to state-owned mining company Epangelo Mining, which had an option to double its interest to ten per cent.

Chief executive Len Jubber said Bannerman intended to retain a majority stake in Etango but needed to bring in another, bigger joint venture partner to help it pay for the development cost.

Mr Jubber said the company sought a partner that had a strong balance sheet and would buy uranium from the proposed mine.

"Ideally, they would be the kind of party that was looking to support their substantial nuclear (power) build - in other words, one of the Asian entities," he told AAP.

"We're also open to involvement by a (mine) operator ... so we're casting the net wide."

He said discussions with potential joint venture partners were active.

There was strong interest in Namibia, a relatively politically stable African nation with a well-known uranium province centred on Rio Tinto's Rossing and Paladin Energy's Langer Heinrich mines.

The Husab uranium project, near Rossing, was recently snapped up by a subsidiary of China Guandong Nuclear Power Group (CGNPG) via a $2.1 billion takeover of Australia's Extract Resources.

Mr Jubber declined to comment on whether CGNPG would target Bannerman but indicated that the explorer's former suitor, China's Hanlong Mining, was no longer in the picture.

"They weren't interested in progressing a transaction in what we would deem to be a reasonable timeframe," he said.

"We felt that they weren't genuine in terms of their interest to engage, so we continued doing what we set out to do which was progress the (Etango) study and complete it."

Mr Jubber said the completion of the study allowed Bannerman to step up its hunt for another joint venture partner.

Funds obtained from such a deal would be leveraged to secure debt to help pay for the planned development.

Shares in Bannerman closed up one cent, or 4.88 per cent, at 21.5 cents.

[SAGI]

April 10, 2012 08:20 ET
Cameco Corporation and Denison Mines Corp. Look to Take Advantage of High Uranium Demand
Paragon Report Provides Stock Research on Cameco Corporation, and Denison Mines Corp.


http://www.marketwire.com/press-rele...cj-1641784.htm

[fat panther]

Not sure all will agree, but I'm happy I can post again (thanks to GM2 AND my wife, similtanously).

With that intro here's something yhat caught my eye today from Bloomberg

Areva SA thinks the market for uranium will continue to struggle until 2014. That's when the world's largest maker of atomic reactors sees the start-up of new reactors eating through the current supply glut to create very strong uranium demand. The Fukushima nuclear disaster weighed heavily on Areva, whose shares have lost 58% of their value since it, but the French firm believes the fundamentals of the uranium market remain intact.

Hello evryone, hope all's well.

[cano]

Sagi,

Looking at some different charts, it seems like all of the miners follow each other. It doesn't matter if it is gold, uranium, etc. They all seem to follow the same pattern whether up or down.

Are you looking at this time period as a great buying opportunity (at the prices we are seeing) right now? It seems like the plan would be to accumulate, and enjoy the ride up. Once these miners start moving, a lot will follow.

[SAGI]

Not sure all will agree, but I'm happy I can post again (thanks to GM2 AND my wife, similtanously).

With that intro here's something yhat caught my eye today from Bloomberg

Areva SA thinks the market for uranium will continue to struggle until 2014. That's when the world's largest maker of atomic reactors sees the start-up of new reactors eating through the current supply glut to create very strong uranium demand. The Fukushima nuclear disaster weighed heavily on Areva, whose shares have lost 58% of their value since it, but the French firm believes the fundamentals of the uranium market remain intact.

Hello evryone, hope all's well.

Yes we did hear something about a FP roaming around the Uranium silver and gold mines doing his own personal DIGGING. Welcome back.
SAGI

[SAGI]

Sagi,

Looking at some different charts, it seems like all of the miners follow each other. It doesn't matter if it is gold, uranium, etc. They all seem to follow the same pattern whether up or down.

Are you looking at this time period as a great buying opportunity (at the prices we are seeing) right now? It seems like the plan would be to accumulate, and enjoy the ride up. Once these miners start moving, a lot will follow.

The usual bad luck I have had is the ones I pick up never quite seem to go up with the rest. Instead of preempting, just get onto a moving train, better to miss a little onboard lunch than to get stale food.

SAGI

[fat panther]

Off topic, but is anyone else following this and trying to figure out how to "front run"it?

http://www.zerohedge.com/news/if-195...-get-out-dodge

Thanks for whatever input there may be from others here.

[jelly]

Off topic, but is anyone else following this and trying to figure out how to "front run"it?

http://www.zerohedge.com/news/if-195...-get-out-dodge

Thanks for whatever input there may be from others here.

I don't bother reading anything from zerohedge.com. They aren't exactly known for credibility.

[fat panther]

I don't bother reading anything from zerohedge.com. They aren't exactly known for credibility.

I don't follow zero, it was linked from The Daily Crux which is part of Stansberry and Assoc which I find to be credible. I have found Zero to be rather shrill, but I will take your comment for the spirit I believe it to be sent in.

However, do you have a comment about the subject(s)?

[jelly]

However, do you have a comment about the subject(s)?

No, that stuff is over my head. I'm not an economist, just a small investor who knows the case for gold keeps getting clearer and stronger as the years go by.

[fat panther]

No, that stuff is over my head. I'm not an economist, just a small investor who knows the case for gold keeps getting clearer and stronger as the years go by.

I thought econ 101 was home economics 101, and in my day guys didn't take cooking. Think metal shop. I do agree 100% about au/ax, but I scare myself with the % I'm allocating there.

Thanks for your thoughts

[fat panther]

Sagi

Sorry for highjacking your thread

[SAGI]

Sagi

Sorry for highjacking your thread

No worries FP and Jelly I am rather enjoying this banter.

[SAGI]

COFFEE WITH CARROT HEAD!

CARS & BETTER HALVES.

Good morning! First of all Easter Greetings to all and a peace full weekend you must have had. Thank you for inviting me back for the first coffee of the new thread. Its good to see old friends reappearing. I do miss many of those that have left including FACTFINDER who ran FACTS of LIFE and silver@nuts&bolts who ran the lotto thread for silver stocks as well as the many others who have moved on. I wish them all well.

There is not a lot to add this week with markets dropping with the fed indicating that a QE3 will not happen in the short term. With that a general drop has affected all Uranium stocks. We continue to persistently concentrate on the large scale deposits found but not yet on the radar of the mass investors. In truth there is little attention being paid to the entire Uranium sector. We have interest in the sector akin to a passerby looking down a drain hole for the time being. In view of this we must continue to persist having a long term outlook again looking forward ten years or more.

The institutions have never paid attention to us and we have to disregard funds like Sprott because they simply are not mainline. Such funds are comparatively small when considered against the bigger players. They just do not come to par with them. These big players are simply not involved in the Uranium sector and will probably not be involved until the sector has woken up dusted it self, walked and begun to run when stocks that are at present in the penny sector promote to the main line becoming big players through the simple demand and supply rules. While the fundamentals continue to strengthen the outlook from the investor point of view does not appear to garner interest in the sector. I look upon us as shrewd investors with foresight for the future. There is the possibility of us being wrong but that is a risk that every investor wishing to garner profit must take.

There are some sectors where the contrarians view point works very well. Gold silver even technology sector works well. Uranium is not one of these sectors. If it is then it’s a long term investment, certainly not simply a one year to three year investment. I suspect we are very near to seeing a short term move in prices of some of the stocks. UUU is one that appears to give such an indication on the technical charts but these are far from a guarantee in profits. In short if you are going to invest in Uranium you will have to consider a long term Buffet type outlook.

We have to look at undervalued stocks which are shunned by the mainstream investor and look at the turnover and potential to continue to sustain these profits for the greater part of the coming ten years.

This week I have begun to accumulate both gold and silver futures in small quantities averaging up. These are to be held longer term (1 week to 1 year- not decided). That is a new venture considering that the stocks are not doing too well. At the same time I intend to purchase some more silver stocks perhaps of Great panther resources. Some gold stock of Kinross gold because I think that they will solve their problems sooner or later and the stock will regain some. I do have some stock of SBB, Mawson and a few others such as Silver Grail who I hope will at some point make a big bang. They have been finding some good concentrations of gold and rare earth recently. http://www.silvergrail.com/news_cent..._oct252010.htm Before anyone jumps onto this one, please note that I have held this one for several years and right now it has dropped drastically. The problem with explorers is that many will simply pay lip service waiting for a momentous general rise in markets before they simply make money on the rise. This may occur. There are others which are the genuine product who are hard working and come up with the goods taking their deposit to production. One deposit I do like is the Sierra Pelada project which is owned 75% by colossus Minerals (CSI.TO) CSI has been dropping in price because investors are becoming nervous about the fact that CSI has not done a proper and formal test of the deposit nor have they got an estimate of the reserve of the mine so they really do not have any idea of the life of the mine either. It could be big since the artisan miners mined some 2 million ounces from this same deposit and CSI has gone deeper and come up with some fabulous results. They have decided to simply go ahead and mine. I guess they know what they are doing. Sometimes that works.
There are rich deposits and then there are big deposits. One of the largest is in Chille and its anyone’s guess as to if it is viable. The bigger they are the longer they take, especially if they are not rich deposits. So either they are rich or they are big. Exeter resources has a big deposit. Its out there with the biggest at 19 million ounces. It also has copper. However they have to come up with some serious dineros in order to make it feasible. I have some investment in that one too. Its gone down a lot partially due to the price of gold dropping but partially by the enormity of the project.

I was pondering on the issue of taxation lately and came across a dilemma. The issue, I am not sure will affect all but if the laws are similar there may be a way to get around capital gains tax on your gold gaining value. It, I think is a technicality but in the UK gold is taxable if the gains are above £8800. However not all gold is taxable as the law states that currency gaining on its own i.e the sterling pound itself is not taxable, but all other currencies are as they are considered as movable assets. In such a case it is possible to buy gold sovereigns minted after 1837 and any gain on them is not taxable because they already are GBP. Thus you can avoid capital gains tax by purchasing gold sovereigns . Do not take my word for it do your own research. http://www.taxfreegold.co.uk/capital...lications.html if such is the case then it is possible that similar exemptions may be in place in your own countries. Do consider that or do some research.

I meet interesting people as I walk down the streets of the outskirts of London. Strange conversations begin and I often find it surprising when in a shop, people begin to stop and listen. I am no one special. I have no impressive personality so I often wonder why this happens. A question is asked and I begin to answer and suddenly there is a small crowd of people from all walks of life stopping and simply listening. No one is disrespectful nor do they mock me either out of respect for my age or perhaps its what I say. I simply reply to what they ask for and answer their questions.

This happened early in the afternoon as I took a small stop at a local cell phone shop simply to browse and look at all the new technology available. First of all though I have some formal education in computers and at one time I was passionate about technology, in the last few years I have lost my desire for change. If it works than I do not need it to be improved. I have no desire for change. A young man for some inexplicable reason asked for my opinion on marriage and what one should look for in the opposite sex when looking to get married. I simply replied that one should look rather at the mother than the daughter. The daughter will have many similarities in terms of nature as the mother and as the daughter is at her guarded best it is more profitable to place focus on the mother who is not on her defense in fact the less she likes you the better as her true nature will come out. One can then judge what the daughter’s character is likely to be based on the mother. This conversation turned into a long and drawn out question and reply, for the better part of an hour with various customers joining in and at one point I found it perhaps a little disconcerting to continue but they would not let me leave. I am perplexed as I do not ask to be heard.

I sincerely hope that my articles do not offend anyone. I make every effort to proof read them and take care of spelling mistakes as well as try and ensure that I have not said anything hurtful especially in such sections as this one. I often talk about families and about your better halves (works both ways) because I have always felt that finding a gorgeous woman (or man) is like finding a bargain Ferrari. It may be cheap first but its all about high maintenance. For most of us we want reliability, safety, quiet, smooth. Very few of us want loud, rowdy, super fast and in your face all the time. In fact it makes sense often not to garner attention. That’s why Ferraris and the likes are often second vehicles or what we term as mid life crisis desires. On our daily run we want the vehicle to be accommodating, comfortable and have space. I guess some of these will be characters that we would want in our better halves. Young men or women may have peer pressure to get married. “Oh you are getting on in age and no one will want to be with you…..you will be lonely all your life.” How often have we heard those or similar words said to the singles. The question is who is getting what? Why do you want me to get married? “Oh! We want to see our grandchildren before we die.” So are you dieing in the coming one year? Two years? Do we have a time line? Did you make out a will? Am I in it?

What is so moral about the institution of marriage today? Do I get married to make you happy? Ummm anyone think about if I am happy? One should not go out and have sex outside the institution of marriage. I think that went out of the window the moment someone actually thought about it. No one was going to get away from the hormone force that easily.

If you are actually married and are having an affair you need to ask yourself; “Why?” Surely there is something lacking in your marriage and instead of solving that issue you are finding solace in someone else’s arms. I do not mean there is any thing wrong with that individual or his wife separately rather there is an issue with the relationship. If everyone is unhappy in the partnership the logic would be to dissolve it. Sometimes working at it is an uphill task and it really is not worth doing it. Its going to be an uphill task all of your lives. I do suspect that there are more and more failures of marriage now than ever before simply because people go into it with a lot of expectations and when they do not get fulfilled we fill disenchanted and its easy to blame the other for all the grief.

Stop blaming and start considering what will make you happy again. Look for all things that did make you happy and start doing them. However do not ignore your commitments. Do not shun from your responsibilities and if there is any love left for that person and if there is even a small chance of that marriage succeeding or simply being sustained than try as hard as you can. Remain married and continue to be patient as the lord works with us in his own way.

Finally do not let your children suffer as they do not hold any responsibility for this separation. Keep it going for them until they are old enough to stand on their own feet and flown the nest and then find your way to your own happiness. These view points are simply one angle and there are many circumstances where the above may not apply.

The week has ended stagnant as I see it. Uranium stocks have not moved and gold though showing signs of life seems to have ended not far from where it began though the week began at 1622 and now seems just above 1650. I still think this run has legs though it is slow going. Uranium has moved slightly at 51.25. Its not far but there may be signs of life later on in the year. It may be pre-emptive but it may be just enough to get interest back in the sector. We will have to be patient with this.

The stocks of interest remain the same with good and profitable producers and a few with good potential. I still think K.TO has good potential to go back up as well as CSI.TO and GPR.TO. Keep an eye on them. Finally some late news on Khan resources. The company will be de-listed from the TSX due to the company not living upto the rules. http://www.marketwire.com/press-rele...ri-1643021.htm Sadly we may see such occurrences from time to time. I have still not bought any shares in GGG.AX awaiting which way the price and progress of the company goes.

Have a good weekend.

SAGI.

[jelly]

As usual, thanks Sagi! Great Panther is by far my favorite silver stock. It's screaming "buy me!" right now sitting just above $2. I also like Tanzanian royalty exploration when it comes to gold juniors. It's been busting some moves lately on good results. I'm thinking about buying more. Having Jim Sinclair as the CEO makes it even more of a BUY in my opinion. Of course I haven't been doing this investing stuff for very long, so what do I know?

[SAGI]

As usual, thanks Sagi! Great Panther is by far my favorite silver stock. It's screaming "buy me!" right now sitting just above $2. I also like Tanzanian royalty exploration when it comes to gold juniors. It's been busting some moves lately on good results. I'm thinking about buying more. Having Jim Sinclair as the CEO makes it even more of a BUY in my opinion. Of course I haven't been doing this investing stuff for very long, so what do I know?

My friend! You know as much as the next man. Knowledge has no boundaries, no shape, no color and certainly no preference. All input is welcome and appreciated. Believe me, you know a lot. You just do not know it yet.

Thank you!

SAGI

[fat panther]

Sagi
I think we are all better served here by not responding to/debating your insight, wisdom and musings about life in general. I truely love your and down to earth obversations about life as much as the markets.

However (there is always a caveat), I have a thought about marriage that has rattled around in my mind for years, and four marriages.

The institution of marriage was concieved approx 3,000 years ago. At about the same time the average life expectancy was about 20 years old. As late as the 1850s, life expectancy was around 40 years old.

Some rough math tells us that in the original concept of staying with the same partner til death due us part, is seriously straining the idea with the life expectanties of today.

Just very rough thoughts, fwiw.

FP

by the way, maybe we should encourage the youngin's to wait longer so they have a better chance of meeting the death due us part, part.

Also, fwiw. Sometimes it's better to be from a broken home to live in one. Just sayin.

[SAGI]

Sagi
I think we are all better served here by not responding to/debating your insight, wisdom and musings about life in general. I truely love your and down to earth obversations about life as much as the markets.

However (there is always a caveat), I have a thought about marriage that has rattled around in my mind for years, and four marriages.

The institution of marriage was concieved approx 3,000 years ago. At about the same time the average life expectancy was about 20 years old. As late as the 1850s, life expectancy was around 40 years old.

Some rough math tells us that in the original concept of staying with the same partner til death due us part, is seriously straining the idea with the life expectanties of today.

Just very rough thoughts, fwiw.

FP

by the way, maybe we should encourage the youngin's to wait longer so they have a better chance of meeting the death due us part, part.

Also, fwiw. Sometimes it's better to be from a broken home to live in one. Just sayin.

LOL you crack me up FP.

First of all Life expectancy was roughly the same for men and women, actually women outlasted the men because the men went on expeditions, adventures and the such. Time became useless, and men got bored out there so they would take another woman. So if you were a sailor you had a woman in several ports. Besides that some of these walkabouts were two to three years long. I would think that the whole idea of getting married was to bring some sense of stability. As civilization progressed people moved around less so there was the need to settle in one place unlike before. Structures became permanent rather than temporary and usually you became known after a while so you settled in.

Nevertheless I agree with you that children should take time and getting married at a later stage is not a bad idea.

4 Marriages???? Di ya not get the message after the first and the second???? I suppose if one does not succeed at first .....TRY TRY TRY TRY AGAIN. Well at least you are persistent. I guess I lost out of the match in the first round. KO
LOL

SAGI

[SAGI]

Aw BUNDESLIGA! WHY DOES THIS HAVE TO HAPPEN NOW.
COVERAGE OF UUU AND CAMECO INITIATED BY JP MORGAN. SORRY CHAPS CATS OUT OF THE BAG.

http://business.financialpost.com/20...o-uranium-one/

[fat panther]

Bunde what? Have you lost it? Guess you're pissed!

Yea, this sucks. We're all gun shy from past disappointments and we sat on our hands too long.

On a brighter note, let's all get ourselves in the "momentum trader" mode.

We can't always be at the head of the pack.

As a matter of fact, listening to the day traders (many) I know, they collectively are turning to momentum trading for survival.

Maybe we can make it work for us.

[SAGI]

You got the Jest of it FP. I was hoping to pick up a big chunk of UUU on summer lows but its on its way up or at least it should be. My advice BUY in now as there is a possibility that a number of the big boys will jump onto the band wagon now. This should get the ball rolling. UUU is way under priced for what it does. Its a big producer! Its cost are well below most except probably cameco and ERA. (Ranger mine australia). Its probably right there in the top 5 producers in the world of Uranium. Ok fine it has happened. Its what we were probably waiting for but we are also getting into the normal season when stocks begin to take a break. UUU has not gone up too much but that volume jumped to double yesterday. So keep an eagle eye on it. We should expect coverage by other companies now.

SAGI

[SAGI]

Denison Mines, Energy Fuels to merge into leading pure U.S. uranium producer

http://www.mineweb.com/mineweb/view/...9590&sn=Detail

[donkey]

With the a shift to a focus on momentum, is there any insight on how to play the uranium juniors/explorers?

I'm thinking any increased focus on Uranium can't be bad news but any thoughts on the sequence of events before juniors and explorers pickup some steam would be wonderful.

[fat panther]

From the Financial Times

Uncertainty over the future of Japanese demand for nuclear energy has overhung the uranium sector since the Fukushima disaster more than a year ago, but now Japanese Prime Minister Yoshihiko Noda says units at two reactors in western Japan should be turned on after they pass computerized stress tests. Even though no one expects a rapid rollout of nuclear power station reopenings in Japan, restarting two reactors is a good start to what will likely be a gradual resumption of nuclear-power generation in the country. Erasing the uncertainty over Japan's nuclear future could act as a catalyst for uranium stocks.

[fat panther]

With the a shift to a focus on momentum, is there any insight on how to play the uranium juniors/explorers?

I'm thinking any increased focus on Uranium can't be bad news but any thoughts on the sequence of events before juniors and explorers pickup some steam would be wonderful.

f

Just a gut feeling from the PM junior/explorer sector, we,ve a ways to go b4 the herd catches on and ignites them. Then again, maybe the internal MA will heat up.

See, I told you I didn't know squat!

[SAGI]

f

Just a gut feeling from the PM junior/explorer sector, we,ve a ways to go b4 the herd catches on and ignites them. Then again, maybe the internal MA will heat up.

See, I told you I didn't know squat!

No one is stupid. I refuse to accept that anyone is stupid. The fact that you found your way to this website proves that you have foresight and intelligence. Keep positive thoughts is what we must all have. no matter what walk of life we come from you are as rich as your thoughts. Remove all negativity, keep good thoughts in your mind and every day will be a good day.

SAGI

[SAGI]

COFFEE WITH CARROT HEAD!

GRAPHITE GRAPHITE AND MORE GRAPHITE. THE RULES OF ENGAGEMENT.

Get a plain piece of paper and get a pencil. Now look at the tip of that pencil. Can you imagine that you are looking at an element that is actually harder than a diamond and over 10 times tougher than steel when converted to something called Graphene? Sounds like a monster.

While posting the last coffee article I received one of the usual subscriptions which mentioned Graphite. Well the headline says it all this particular article will concentrate on Graphite. Our usual understanding of Graphite is much to do with the bit that we find at the end of our pencil. I think most of us were more familiar with it when we were in grade 3 unless you are an architect or an engineer. That is the way things are and when I was using a pencil I never thought about this small ingredient becoming important enough for investors to consider it seriously. Slowly but surely Graphite is becoming a mainline product that is attempting to become a vital key ingredient of the future when having been shunned for the last two decades.

From my initial studies of Graphite the current production is about 1,100,000 metric tons. Most of this is produced in China about 73%. There is a lot of graphite in China, India, and Madagascar. Graphite is used for conductivity, lubrication, heat resistance and bonding. The mineral is also used in batteries, fuel cells and nuclear reactors.

Graphite is used in Lithium ion batteries better known as Li On where it is roughly 20 to 30 times more used than lithium by weight. By 2020 the hybrid vehicles will reach a production of 6,000,000. Currently the production rate is about 400,000 vehicles per year.

The EU and USA have now placed graphite as a supply critical mineral.

Graphite is also being researched for use in high speed micro processors as it conducts electricity at a rate of 30 times faster than silicon. This research is far form a viable solution so do not get your panties in a twist. It's not so much as if it conducts electricity quicker, rather it’s a question of control which has not been solved and IBM at least states that while there is potential its simply that, and will not replace silicon any time soon. We are looking at the future in terms of a time scale of 10 to 20 years and a lot can change in that time.

There are several types of mined graphite that comes out but the one that holds the highest price is something called flakes. These come is several grades. I do not understand the technical aspect of this and I need to do some more research.

Still considering the fundamentals of the above we can now take some interest in the material. There are a number of companies out there which are into graphite mining. These are some of the ones that should be researched into.
(Some of the descriptions have been copied from the companies websites)

Northern Graphite Corporation is an Ottawa-based Canadian mine development company that is listed on the TSX Venture Exchange under the symbol "NGC" and also trades on the OTCBB under the symbol "NGPHF".
Northern’s principal asset is the Bissett Creek graphite project located 100km east of North Bay, Ontario and close to major roads and infrastructure. The Company has completed an NI 43-101 Preliminary Economic Assessment Report on the project and has subsequently initiated a bankable final feasibility study and commenced the environmental and mine permitting process which are both expected to be completed in the second quarter, 2012. Northern anticipates that it will be in a position to begin construction of the mine in the 3Q, 2012, subject to positive results from the final feasibility study and the availability of financing.



Standard Graphite Corp. SGH.V is focused exclusively on the exploration and development of a large portfolio of flake graphite properties in Canada. The company is rapidly positioning itself as North America's premier pure-play graphite exploration company and it controls 100% interest in 13 highly prospective graphite properties within known graphite districts in both Quebec and Ontario. This is an early play company and I have not done too much research on these companies.


GrafTech GTI is a company with 125 years of experience in the carbon and graphite industries. In the late 1800s, it actually supplied arc carbons to Cleveland, Ohio, enabling the city to become the first in the world with electric street lamps.
Today, GrafTech's products are used in a variety of industries including steel, energy, technology, chemicals, aerospace and transportation. The company has 19 manufacturing facilities strategically located in over 70 countries spanning four continents.

Of all the companies out there GTI would stand out at the moment as one of the companies that may be in a good position to move ahead if the demand for graphite and its variants increases. GrafTech is also the twelfth-largest patent holder for applications in the field of graphene. It currently holds even more patents for graphene applications than big name companies like General Electric (NYSE: GE), Bayer AG (ETR: BAYN) (FRA: BAYN), and Canon (NYSE: CAJ).

GTI is currently oversold. This would be the first company that I would research and if one os going to get into Graphite my entry would be first through this company.

Flinders Resources Ltd. (TSX.V:FDR) is Toronto Venture Exchange listed resource company that owns 100% of the Kringel Graphite Mine, a unique and strategic European graphite project in central Sweden. The Kringel Mine, with rated capacity 13,000 tonnes per year of flake graphite, operated from 1996 to 2001, when production was halted due to falling graphite prices. Since then, the Kringel Project has been held on care and maintenance.

I am not recommending that anyone invests in Graphite based companies at this moment but suggest an initiation of interest in the subject.

This article gives you some more information on this company as well as some others and explains what graphene is. http://seekingalpha.com/article/4716...l?source=yahoo

Lets analyse our subject matter. First of all graphite has been used since at least when the pencil was invented. We probably think of graphite when we think of a pencil. So it has not made a huge impact in the last ten years. What has changed now, that it warrants an interest? The change is the product graphene.

Graphene has suddenly garnered interest due to the potential of using it in alternative energy. (Glimmer of a light here as to how it relates to us).

As we are aware one of the fundamental issues among others for batteries is that the charging time taken to recharge a lithium battery is excessive. If we were burdened with an electric vehicle our major issue would be on how to recharge the battery. Even if the battery were to last for a long haul journey such as perhaps 500 or even a thousand miles, the time taken top recharge the battery is a major hurdle. Currently we would require at least several hours to recharge the battery. However recent discoveries in graphene show that in theory this recharge time could reduced in smaller batteries to mere seconds or a minute at most. (Ok blink now)

Graphene is the result of breaking down graphite, a cheap, readily available material commonly used in pencils, into layers one atom thick. In this form, it has remarkable properties.

The above was taken from this article. It is a good read. http://phys.org/news/2011-07-graphit...y-storage.html

We are at the beginning of a technology thrust when it comes to electric cars. The hybrid provides us with a bridge to where we need to get which is pure electric. Like a jigsaw we have several disjointed parts that appear not to fit but with patience and remarkable breakthroughs in science we may be able to get a clearer picture. I am least interested in technology or how it happens. I think for the majority the application and the convenience are the key points. For investors we are tasked with the monumental ordeal of sifting through a plethora of information and to analyse which of these breakthroughs will eventually become main line enough to create a profit. In many ways it is better to go with the horse that has probably been ahead of the rest. However there is always the chance that a contender may make it to the top. The world is dynamic and so is progress. Today’s top is tomorrow’s bottom. Graphite has potential. There is a downside to every thing. We often find that time is not on our side and to address this we like to go with the majority. We find a target but we do not shoot it until the entire platoon is shooting out there. Graphite is a target that we can keep an eye on. Graphene is not today or even next year. We are looking at ten years in the future and ten years can change a lot of things. So why the interest today?

The answer to that is that, this story is the same as rare earths. Graphite has the same recipe coming up as Rare earths did. News letters are getting into this product. China is possibly looking at holding back the supply, and governments have noted it as an essential commodity just like rare earths. These are all ingredients which lead to whetting the appetite of potential investors and providing us with a potential of certain key stocks moving up rapidly just as rare earths did when Mr. Dines brought them to his subscribers attention. Stocks like QRM and RES blew their tops on nothing but air. Today QRM is pulled back at least half if not 75%. RES has also dropped drastically. That is a possibility on some of the above mentioned. Still Graphite can be used even if graphene is still on research. Three of the companies are either near production, are producers or manufacturers or are on maintenance. This makes them better than possible movers in the near future if various subscriptions suddenly begin to take an avid interest in Graphite as is now occurring with at least one subscription.

The past has happened and cannot be changed, the present is too close to think and that simply leaves us with the future. I have not brought anything new in terms of new ideas or investments for a long time. For once I would like us to be ahead of the crowd, at least in terms of information if not anything else.

Speaking of Rare earths it would a good idea to keep an eye on them at these prices. They have dropped a lot and I am keeping an eye on just two. QRM and RES. Both stocks are Dines introductions. Both moved up heavily but have now regressed reasonable prices since last years boom. QRM.TO has dropped down to previous lows and can be a speculative buy at 1.75 or lower. Now currently sitting at 2.02- Just a heads up! RES.TO had dropped to below 3.50 in January but is now back up to 5.50. Still it could drop from here as I see a possible downturn happening in the summer doldrums. This is no guarantee that it will happen but it often does and if you are in profits you may want to take them off the table before the middle of May. This is when things begin to take a down turn.

Gold is ranging between 1622.00 (Estimated low) to 1680.00 (Estimated highs) I have done a Fibonacci range and I am gratified that the price is falling or rising within this range. I have been studying Fibonacci for some time now to see if we can find entry and exit points. While I do believe gold should move, it is simply an anticipation, a calculated outlook based on the fact that if it does not go down then some fundamentals will push it up. Summer is usually a dull time for gold so we may see some drop. Ideally with gold it is not worth speculating on a daily or even weekly basis in the futures markets. Its about long term trends and this will play out over several months at the very least. In the last three months we have had a lot of range bound graphs. Uranium is range bound, gold is range bound, silver is range bound after initial signs of life. The only anomaly are the PM stocks which have taken a beating with the exception of Silver Wheaton (Ok technically it has dropped but not as much as the others). Most of them have dropped drastically so consider many of the producers in these as some of them are at a price you would four years ago pay for exploration companies and willingly too yet the market is now reluctant to invest in producers at the same price. Are we missing something here? Should we not be taking a contrarian view here? Gold stocks ???? Anyone ??? Dime a dozen??? Fire Sale!

Currencies have also take a step back on the longer scale with the pound ranging between 1.56 and 1.60 while the Euro continues to range between 1.29 to 1.32. These are fairly tight ranges and make it difficult to trend trade. I must say that I continue to have more confidence in commodity backed currencies. I still have more faith in the US dollar than I do in the Euro or the British Pound. Still the governments will continue to control the eb and flow as best possible. What would bring strength to the dollar? A major war or an eminent one. Seasons may play havoc and I hear things are a little funny in the soft commodities markets especially in cotton and coffee. Something not right with that market so something may happen soon. Coffee anyone?

I wanted to write a little about the rules of engagement. I think that will infer the business of marriage. Sadly that is not what I am talking about today. I am referring to the rules of engagement for stocks. The problem with the rules is that they should suit your nature still the following is one set of rules that I have thought of and perhaps they are not new still its worth considering them. They do not apply to any specific volumes or size of capital stocks. They are simple and other rules can be added if one thinks it is necessary.

I call it the 4 entry point and exit point system.

STOCK MARKET 4 ENTRY AND 3 EXIT POINT SYSTEM.

RULES OF ENTRY CONDITIONS.

1. Oversold position noted on RSI indicator.
2. 5 sma crosses over 10 sma. – Alert
3. 10 sma crosses over 20 sma—Entry 3- 50% of full amount allocated BUY
4. 20 sma crosses over 55 sma – Entry 4- 50% of full amount allocated BUY

EXIT STRATEGY- LOSS 10% BELOW LAST BOUGHT AMOUNT PRICE- SELL FULL AMOUNT.

RULES OF EXIT STRATEGY PROFIT.

1. Overbought position achieved (May not occur so ignore if below all conditions are met.)
2. 5 sma crosses under 10 sma – Alert.
3. 5 sma crosses under 20sma- Exit point 1- 50% of full amount allocated. SELL
4. 10sma crosses under 20SMA-Exit point 2- 50% of full amount allocated SELL

With the above method we are looking to trend but ignore some drops in prices as long as we are in good profit. So even if we do loose 50% stock by selling we continue to remain invested with 50%. If the chart reverts back to an up trend. Do not reinvest what you have removed rather continue to hold the other 50% where now the rules of exit apply once more. This only occurs if the previous high is breached and the trend continues to move upwards having taken a good breather. Any resistance in finding a new high should be considered as a warning. The exit strategy of taking a loss can be changed according to what you feel comfortable with.

One should try to build their own rules of engagement but one must also follow them diligently rather than moving in and out using gut feeling try out your rules first on a simulated account before applying it to the real thing. It requires a long term sampling. Perhaps use historical data but be true to yourself and see if the system allows you to make money in the longer term. Small losses may occur but if the longer outcome is profit than its good. The RSI is simply to alert you that possible long positions or short positions are imminent.


None can predict what will happen this year or the next. The only thing predictable is the unpredictable. We can merely speculate as to what will happen in the future. We are entirely dependent on the mass to see the same picture as us and that does not happen often, otherwise the entire world would be reading up on threads such as these and others. Recent reports state that the UK is already planning sky roads. They are anticipating that traffic will be too heavy for the small island and sky cars will be the way of the future. Plans are made for anything and everything just as a chess grand master plans for any and every move and counter move. Investors cannot afford to be any different. We are the point men in this thread and in others like this. We head the spear, heading into an unpredictable horizon. We take the maximum risks taking the brunt of failures for the rest in the hope that we will hit at least one target that will make it all worthwhile. Normal investors do not take such risks, Institutions wait for individuals like ourselves to amass in order to point the direction for the heavy artillery to come in later and provide heavy support but by that time many of our kind will be have been exterminated. The survivors will be granted a small reward perhaps to survive and fight another battle another day. Such is the destiny that we have chosen. A thankless job and reminds me of a phrase I read somewhere in an office; “ Doing this job is like taking a piss in your pants you get a warm feeling but no one else notices.” I apologize and it was rather crass of me to say that but it fits us.

Uranium 1 is what my instincts are telling me to concentrate on and I mentioned that a position was coming into play and to keep an eye on it. Recent coverage of it by JP Morgan makes it main line now.


Uranium and alternative energy 2 thread has now hit 31000 hits. More people are interested in Uranium now than at any other time since this thread was started. I am glad and hope that the stocks suggested will make it big at some point in the near future. I truly am in need of the amber nectar now. I hope you will join me again in the coming weeks.

Have a good weekend and begin preparing for the summer lows that will most likely come. Statistics show that we have a 50-50 chance of hitting them.

SAGI

[cano]

Sagi,

Any thoughts? What affect would it have on the uranium stocks?

http://kingworldnews.com/kingworldne...ne_Effect.html

[SAGI]

Sagi,

Any thoughts? What affect would it have on the uranium stocks?

http://kingworldnews.com/kingworldne...ne_Effect.html

First of all nothing new is stated in the above article. Therefore all information has been absorbed by the market already. Secondly and more important is the fact that people have absorbed a lot of the information and are already aware of the state of the economy. We may have a consolidation or a correction or even a slight decline in the markets. What's new? It happens every summer more or less. People go on holidays, Summers out people want to be outside. Its the season for declines. Anything unusual? I suspect gold may not decline too much this summer and we may see early rises of commodities than usual. My reasoning is that Gold did not decline after the marriage season simply because people had not bought that much in India due to higher taxation on gold in the first place at the beginning of the season. Despite that Gold did not decline beyond the norm either and that is unusual. I think markets this year will be more positive than last year. I believe the US will recover. History shows that the world has always underestimated and taken this country for granted and it has proven them more often wrong.

SAGI

[SAGI]

Fission Energy Enters into Agreement to Acquire Pitchstone Exploration Ltd.

Press Release: Fission Energy Corp. – 3 hours ago


FIS.V 0.58 -0.02


KELOWNA, BRITISH COLUMBIA--(Marketwire -04/23/12)- FISSION ENERGY CORP. ("Fission" or "the Company") (TSX-V: FIS.V - News)(OTCQX: FSSIF.PK - News) is pleased to announce that it has entered into an Arrangement Agreement ("the Agreement"), whereby Fission has agreed to acquire all of the issued and outstanding shares of Pitchstone Exploration Ltd. ("Pitchstone") by means of a Plan of Arrangement ("the Arrangement").
Acquisition Terms
Fission has agreed to issue 0.2145 common shares of the Company ("Common Shares") for each common share of Pitchstone. Based on 45,208,185 Pitchstone shares outstanding, Fission will issue 9,697,156 Common Shares to complete the transaction, representing approximately 8.5% of Fission's issued and outstanding Common Shares as of the date hereof. Pitchstone has further agreed to a C$250,000 termination fee that is payable upon the occurrence of certain events, including if Pitchstone enters into a superior proposal. Pitchstone Options and Warrants will be converted to Fission Options and Warrants on the same basis as the common shares.
Pitchstone's board of directors has unanimously approved the Plan of Arrangement and will recommend approval to the Pitchstone shareholders and optionholders in a forthcoming special securityholder meeting scheduled to be held on or about July 16, 2012. The Plan of Arrangement requires approval of 66 2/3% of the votes cast by shareholders and optionholders of Pitchstone, voting as a single class. Fission has entered into Lock-up Agreements with all of the directors and officers of Pitchstone who have agreed, subject to certain exceptions, to vote their shares in favour of the Arrangement. A total of 8,654,668 common shares of Pitchstone, or approximately 19% of Pitchstone's outstanding common shares, will be subject to Lock-up Agreements.
The Plan of Arrangement is subject to approval by Pitchstone's shareholders and optionholders, the TSX-V and other regulatory agencies, in addition to Court approval by the Supreme Court of British Columbia. The transaction is expected to close on or before July 16, 2012.
Advisors
Lincoln Peck Financial Inc. is acting as financial advisor to Pitchstone and Evans & Evans Inc. has provided a verbal opinion to the effect that, as of the date hereof, the consideration under the Arrangement is fair from a financial point of view to the Pitchstone shareholders. McCullough O'Connor Irwin LLP is acting as legal advisor to Pitchstone.
Primary Capital Inc. is acting as financial advisor and Blake, Cassels & Graydon LLP is acting as legal advisor to Fission.
About Pitchstone
Pitchstone is an exploration company which explores for uranium in three districts in Canada and Namibia. The property portfolio features 13 projects in the eastern Athabasca Basin, Saskatchewan, five of which are 100% owned. In addition, there are two joint venture projects in Namibia and several joint venture projects in the Hornby Bay Basin, Nunavut.
FISSION ENERGY CORP. (TSX-V: FIS.V - News) is a Canadian based uranium exploration and development company with properties in Saskatchewan's Athabasca Basin, Quebec, and the Macusani District in Peru. In 2010, Fission made a significant high grade uranium discovery at its Waterbury Lake property immediately adjacent to Rio Tinto's (formerly Hathor Exploration's) Roughrider Deposit, and in 2011 made a high grade boulder field discovery at its Patterson Lake South property. Both are located in Saskatchewan's Athabasca Basin: home of the richest uranium deposits in the world.
This press release contains "forward-looking information" that is based on Fission's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Arrangement. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Fission's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: expectations regarding the Arrangement, the future growth, results of operations, business prospects and opportunities of Fission and the combined company, uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Fission disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
ON BEHALF OF THE BOARD
Dev Randhawa, Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

[fat panther]

Honestly, I don't know

A few months ago (last Sept) a "birdie" told me to look at graphite

I had heard no-one ever mention the subject (except as our revered Sagi did recently about pencils).

I dug into this one thinking I could not only get the leading edge, but maybe even redeem my past blunders here and elsewhere by being on the leading edge rather that an also ran.

I chased "graphite" until it ran me in a hole like a fox after a rabbit (me).

When our beloved Sagi posted the words graphite/graphene I snapped.

I posted a response that was so torid, it woke me from a really deep rum sleep early the next morning, only to rush to the computer and hit "delete/edit". "Gawd, did anyone see that and just be polite enough not to mention it?"

Well, maybe for a little vindication and some levity, I offer the following: (No offense, Sagi)

From the Casey Report

Graphite: Time to Invest, or Flavor of the Day?
By Andrey Dashkov, Research Analyst

Graphite has been getting a lot of buzz recently, raising bullish expectations among some investors and even talk of a future bubble. Why? The price has risen steadily over the past couple of years and attracted a lot of attention. Let's have a look at why some market participants are excited about this mineral and see if it's worth our investment dollars.

Uses

Graphite is an important industrial mineral. As the US Geological Survey reports, "The major uses of natural graphite in 2011 were estimated to be refractory applications and crucibles combined, 33%; foundry operations and steelmaking combined, 26%; brake linings, 7%; batteries and lubricants combined, 5%; and other applications, 29%." There are different types of natural graphite, each having unique qualities that suit certain applications: crystalline flake graphite; amorphous; and lump graphite. The most desirable and expensive of all three is flake graphite, which is produced from less than a half of the world's graphite mines and is suitable for high-tech applications. Only synthetic graphite produced from petroleum coke can serve as a substitute for costly flake, but that process is quite expensive due in part to high oil prices.

Although there are predictions about graphite demand exploding because of demand for lithium-ion batteries - where it's used extensively - by the time electric cars powered by these batteries become popular enough to impact global automotive demand, there's likely to be technology that will allow cheap production of synthetic graphite. More traditional uses of the mineral are the primary source of current graphite demand, which is mostly dependent upon the health of the global economy. From this standpoint, one must have an optimistic outlook on the economy to be bullish on graphite.

Looking out further, many believe that graphene will be the driver of graphite prices. Graphene is a material derived from graphite and can potentially be one of the strongest, lightest, and highly conductive materials currently known. While the opportunities graphene may open up are extraordinary, it's too early to make any economic projections for it, especially considering that synthetic graphene has already been produced in a laboratory. This technological progress is good for society, but not so much for graphite mining companies and potentially their stock prices.

Another source of potential demand is in pebble-bed nuclear reactors. The hope is that these will become more efficient and safer than current reactors and hence more widespread. They would require a lot of graphite, but this spread of pebble-bed reactors has not actually happened yet.

Supply

The graphite market has been compared to the market for rare earth metals: they're both deemed "critical" by several countries, and China - one of the world's leading producers - has tightened supply. In fact, in 2011 about 65% of global graphite mine production came from China, followed by 15% from India. China holds 71% of the global graphite reserves, again followed by India with 14%.

With this domination, China can easily influence the graphite market. The recent trend (since September 2011) has been a consolidation of Chinese producers. And the news from Hunan province is that the 200+ mines currently producing 96% of global amorphous graphite are being consolidated by the government. This move toward consolidation may result in decreased output, which falls in line with other Chinese initiatives, such as in the rare earth market.

Total annual graphite production is estimated at 1.1 million tonnes a year, and projections are that consolidation would take 100,000 tonnes per year production off the market. Amorphous graphite is cheap and is used in traditional industries, such as steelmaking - but if the supply of amorphous graphite falls, end buyers may have to consider switching to flake graphite, which is two to three times more expensive than amorphous. While amorphous graphite costs about US$500-800 per tonne, high-grade flake graphite can fetch as much as US$2,500 per tonne.

Demand for higher-grade graphite would provide additional motivation for miners and explorers - and also for R&D companies to invest in high-grade synthetic graphite.

If China takes the same approach to graphite as it did to rare earths, a politically orchestrated drop in production would likely spur the market's interest in non-Chinese graphite mining companies, at least in the short term. From a more fundamental perspective, however, we're reticent to bet on Chinese policies; in the 1990s, global graphite prices crashed when it flooded the market with its domestic output in an attempt to kill competition. As Louis James, our senior metals investment strategist, says, "China giveth and China taketh away."

Counterpoints

One cautionary argument about the graphite market is its size: it's tiny. Smaller markets tend to be more volatile, which can be both positive and negative. A low-liquidity sector like graphite, where there are few companies and the price is still settled mostly via direct negotiations, could deliver outstanding gains if your timing is good. Equally possible is getting crushed by a sudden setback or change in market dynamics.

To be sure, companies are likely to bring more projects online if the current momentum for graphite persists. The timing is tricky, though; we're at least half a decade away from the new technologies that many investors hope will create a tidal wave of demand for the mineral. These uses are simply not yet being deployed or do not appear to be as widespread as their advocates claim. Thus, placing bets now would require a boatload of patience, along with some confidence that both the finished technology and a strong economy will pan out before the companies invested in run out of steam.

Simply put, by the time a company discovers, develops, and builds a graphite mine, technology may have advanced to the point where prices are low or substitutes are found. A more compelling play in our opinion would be to explore investing in a synthetic graphite company.

(Editor's note: Many more compelling speculations with high-profit potential will be revealed at the Casey Research Recovery Reality Check Summit in Weston Florida this weekend. And even though you may not be attending, you can still learn all about these under-the-radar plays with the Summit Audio Collection.)

Conclusion

From both technological and economic perspectives, we haven't yet seen compelling evidence that would persuade us to consider graphite as the "mineral of the future." The factors frequently mentioned as bullish for graphite are mostly "what if" speculations, which border on sounding too good to be true. And as the saying goes, if something looks too good to be true, it probably is. If the new uses for graphite don't come to fruition, current end users cannot be relied upon to drive the market for the mineral much higher, at least not in the near- to mid-term - not unless you think the global economy is about to explode into a major growth spurt.

We'd argue that since expectations play an important role in how markets view graphite companies, a lot of the upside in this sector has already been factored into their stock prices.

All this brings us to the realization that while graphite and its derivatives play an important role in the economy, they do not necessarily represent an ideal investment, at least at this point. This doesn't mean, of course, that there's not money to be made on graphite plays; graphite, rare earths, and lithium are all critical elements in our modern economy. But to be successful, we recommend looking beyond the buzz.

Current fundamentals - weak job markets, slow economic growth, ongoing sovereign debt crises, and the looming possibility of inflation - keep our interest at bay for right now industrial minerals. Their merits and praise may be well justified, but successful speculators must distinguish fundamentals from fashion.

FWIW, from FAT

[SAGI]

Hi FP,
I fail to understand why you deleted the posting. If you feel strongly about it blow it. If I am wrong ...well I am wrong. Please note that I did mention in the article that its simply an initiation of interest and not to be taken as the time to buy. We simply keep an eye on it. I try to be self critical and provide both the pros and cons. Since you have done more homework on this than me, well you now come to the front of the class and begin ripping it apart. That is the whole point of it. Give your views and valid points. Lets see if it merits deletion. I also mention that the tale is similar to the rare earth ones, and so someone is going to try to SELL it. Its the usual game. Question is can we find a gem in all this to keep.

Regds
SAGI

[fat panther]

Me thinks the herd was wishing for the next "rare earth" a little too much, too soon

There seems to be plenty of levity coming out now and since we're only talking one "element" instead of all the exotic rare earth "elements" it's a little easier (for me) to comprehend. The time lines for full usefullnes are the game changer for me. Just seems we're too early.

Other thoughts?

http://graphiteinvestingnews.com/227...-graphene-use/

[SAGI]

Me thinks the herd was wishing for the next "rare earth" a little too much, too soon

There seems to be plenty of levity coming out now and since we're only talking one "element" instead of all the exotic rare earth "elements" it's a little easier (for me) to comprehend. The time lines for full usefullnes are the game changer for me. Just seems we're too early.

Other thoughts?

http://graphiteinvestingnews.com/227...-graphene-use/

The problem with fairy tales in the investing world is we never quite know if or when they may become a reality. its easy enough to create an illusion or even a lie but if you say it often enough and long enough it becomes more emphatic than the truth. Perhaps Graphene can be one of these. It may not be the holy grail, but it may try to climb anyway. We can still research it, we haven't got anything else to do anyway.

SAGI

[cano]

http://www.fnarena.com/index2.cfm?ty...F91E254A24867A

[SAGI]

BUT WHAT IN PLACE OF NUCLEAR POWER.
http://www.ipsnews.net/news.asp?idnews=107564

[fat panther]

BUT WHAT IN PLACE OF NUCLEAR POWER.
http://www.ipsnews.net/news.asp?idnews=107564

At least someone is beginning to discuss publicly how to intelligently replace nuclear, if they can.

[SAGI]

Russian Capitalist Acquires Lithium Battery Manufacturer Ener1

Thu, Apr 26, 2012 Feature Articles, Lithium Articles
Post by Dave Brown, Lithium Senior Reporter
By Dave Brown — Exclusive to Lithium Investing News



Russian entrepreneur Boris Zingarevich has obtained control of United States lithium battery manufacturer Ener1. The $81 million investment by the Russian businessman, who has close links with Russian President Dmitry Medvedev, has raised some concerns for US-based media outlets.
The Obama administration has a strong track record of employing public funding to advance “green energy” and lithium battery technology research; however, in the wake of notable bankruptcies, including those of Solyndra and Ener1, criticism has been presented. The government had invested $118 million in Ener1 through federal stimulus programs, with an additional $80 million in local and state initiatives. The company had recruited top US scientists at the Argonne National Laboratory in Illinois to develop and produce leading-edge battery technology for electric cars and defense purposes.
Most recent initiatives
The Advanced Research Projects Agency – Energy (ARPA-E) has allocated $43 million for two new programs aimed at developing energy storage technologies that will promote efficient and secure energy supplies.
One program will fund research of advanced function and control technologies to improve the performance, safety, and duration of energy storage systems. It is intended to pioneer a new generation of electric and hybrid-electric vehicles, and improve the practicality of the domestic electricity grid.
The second program recognizes the role that small businesses play in developing energy storage technologies, and is soliciting small business applicants to develop stationary and transportation energy storage technologies. This initiative, which includes research to advance low-cost, grid-scale storage, particularly for utility companies, involves implications for lithium investors. Three additional research areas for vehicle energy storage include battery designs, chemistries, and architectures.
Increased commitment
A recommitment was evident in President Obama’s $3 trillion budget request for this October. President Obama requested a five percent increase in federal spending on non-defense research and development that, while relatively small, is noteworthy because it comes at a time of intense political scrutiny and economic pressure. The proposed research expense confirms the government’s priority for lithium battery technologies.
The Vehicle Technologies Program stands to benefit from the proposed budget as it would receive a 27.7 percent increase in funding to $420 million. Support for advanced battery and electric drive technology would increase by 73 percent as part of Obama’s continued focus on vehicle electrification. The budget highlights plans to support cooperative research and development with the automotive industry on electrochemical energy storage, power electronics, electric motors, electric traction drive, advanced combustion engines, and lightweight and propulsion materials.
Although the Solyndra case and strong resistance in Congress pose risks for loan guarantee programs and the overall budget proposal, bipartisan and industrial interest should offer support for the Vehicle Technologies Program. This may interest may insulate the program from major cuts and could be a tailwind for the overall lithium industry.
Headwinds for some manufacturers
In an interview with Lithium Investing News Paul Gifford, an advanced level battery consultant explained his analysis for future Department of Energy [DOE] funding, “I think there is a down side for any company that has not successfully competed for DOE money. There certainly was a lot out there and I would think there would be a level of credibility to the technology in being selected to receive DOE funds. But, having said that, the company that will be most successful will secure a contract with a major company. Having contracts with companies like Fisker might be nice, but you can not get the [sales] volumes you need for low cost.”
Resource nationalism?
Vice President Joe Biden said earlier this year, “[t]he question is which nation is going to seize the future. Some nation is going to grab it by the throat. One of the nations of the world is going to lead the world in green energy and technology.”
The roller coaster journey that has followed Ener1 from its inception into the battery business in late August 2005, to January, when it filed for bankruptcy, to its revitalization as a private company in March certainly has some links to Russia.
A Russian bank lent Ener1 up to $100 million in September 2010, and by the end of the next month the company had agreed to supply lithium batteries to the Russian power grid.
Russian appetite for lithium technology
Earlier in the year, a large lithium battery plant was opened in Novosibirsk, on the West Siberian plain, as a joint venture between a Chinese lithium battery manufacturer and RUSNANO. It is anticipated that the factory, called Liotech, will produce up to 500,000 lithium batteries per year. The batteries will be used to power electric vehicles and larger bus batteries in addition to a variety of energy storage applications and emergency power supplies.
Lithium exploration and production companies to benefit
The global demand for lithium is a current theme, whether it is initiated from the US or whether Russia attempts to become more prominent. As the electric vehicle industry takes a firmer foothold, both lithium production companies and exploration projects should generate higher levels of investment interest.