Palisade Research - Mon, Nov 27, 2017

The King Of The Boom Market

article title text beside a jewel crown on a gold chess king piece

Had you invested in Energy Fuels in 2006, you would have made 45 times your money.

And if you were lucky enough to invest in Mike Beck's UraMin, you would have made 625 times your money in just two years.

A $5,000 invested would have returned $3,125,000. . .

In 2003, If you invested $5,000 in Paladin Energy, you would have made over $6,500,000 in just four years. . . 1,330 times your money!

line chart in $AU for (PDN:ASX) Paladin Energy from 2003 to 2006

What do these three stocks have in common?

They are all uranium stocks of course.

Commodities are accepted as the most volatile public market space. As a subset, uranium is the most volatile.

What that means is that the gains in the space can be phenomenal.

Many of the wealthiest of resource investors have made their fortunes in uranium!

And there is no real secret to their success - all it takes is some patience and a contrarian state of mind.

The main thing to remember?

It's that uranium is cyclical. . .

It goes up for a time, and then it goes down for a time.

Sort of like waves of the ocean rising and falling in a predictable rhythm. . .

And if you have the balls to place your bets when its down, you will make a lot of money.

Let's look at Paladin Energy again. . .

In 2002 they acquired their flagship project, Langer Heinrich, for only $15,000.

And by 2003, all of their projects were uneconomical, but offered incredible optionality if the price of uranium was to rise -

Paladin Energy had a war chest of 90 million pounds of uranium, but their market cap was only under $1 million.

Therefore, a couple years later. . .

As the price of uranium started to sky-rocketed. . .

Paladin began advancing these now very economical projects.

And eventually, the company's market cap peaked at a $4.2 billion valuation. . .

UraMin followed the same path. In 2005, Mike Beck and his team spent $4 million to amass a portfolio of 170 million pounds of low-grade uranium.

Touting 20 million pounds of production by 2012, UraMin was bought before any substantial work was actually done.

In a full-fledged bidding war, UraMin was eventually acquired for $2.5 billion in 2007.

The Next Uranium Bull Mega Acquisition - GoviEx Uranium (CVE:GXU, OTC:GVXXF, 7GU:FRA)

GoviEx Uranium is on the same trajectory as Paladin Energy and UraMin.

Govind Friedland and Daniel Major have built a portfolio of 210 million pounds of uranium.

table showing Goviex's measured, indicated and inferred U3O8 resources

And they keep adding...

The company just closed the acquisitions of the Chirundu and Kiraba Valley tenements in Zambia - adding another 11.2 million pounds of JORC resources.

Combined with the Mutanga project, GoviEx now owns 140 of strike length in a prolific uranium district.

Also, like Paladin and UraMin, the projects are in Africa and fast-tracked to production.

In fact, GoviEx plans to be producing by 2020.

The company's flagship project is Madaouela, which touts an after-tax NPV8 of $340 million and operating costs of $24.50/lb.

GoviEx also just released a PEA on Mutanga. The project has an after-tax NPV8 of $112 million with operating costs of $31.10/lb.

Madaouela and Mutanga each have the potential to produce more than 2.4 million pounds U3O8 per year.

With uranium trading at $24.50/lb, GoviEx is on the cusp of profitability. This means that every dollar increase in uranium provides incredible upside in the stock.

For example, if uranium was at $25.50/lb, Madaouela would be making $1/lb. If uranium were to increase to $26.50/lb, Madaouela would double its profit.

In other-words, a 4% increase in uranium results in a 100% increase in profit.

When uranium finally makes its move - GoviEx provides the most leverage compared to any other developer.

It also helps that GoviEx is the Friedland Family's uranium vehicle.

Billionaire Robert Friedland is betting GoviEx will be the next Voisey Bay or Ivanhoe Mines.

Friedland's masterpiece in Voisey Bay, was acquired in 1996 by Inco for $4.5 billion.

Or his recent mega copper deal, Ivanhoe Mines, which has seen a gain of 625% since 2016. Ivanhoe now commands a market cap of C$3.7 billion.

Don't miss this cycle's Paladin and UraMin. . .

GoviEx has all the elements to create multi-generational wealth.

But do you have the patience and the defiance to make the trade?

Palisade Global Investments Limited holds shares of GoviEx Uranium. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report is obtained from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence. publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at (or for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime

Bookmark and Share

 Subscribe in a reader

Our Mobile Site