NUCON-RF Joining Russia's Nuclear Powerhouse?

| About: NNRF, Inc. (NNRI)

NUCON-RF (NNRF.PK) is a US Corporation with an international business model. The Company has executive offices in Washington, Berlin and Moscow. NUCON-RF provides product, technical and engineering support for the nuclear power industry and is addressing environmental and power quality solutions for the governments of Germany, Russia, CIS and multilateral institutions, including the G-8 and the European Bank of Reconstruction and Development.

The mission of NUCON-RF is to provide cutting edge environmental safety solutions for the nuclear waste management and power quality challenges facing the Russian, European and Asian markets.

Current solutions include:

  • Safely shielding, encapsulating and storing a broad range of radioactive and other toxic wastes
  • Protecting & improving the performance of electrical equipment throughout industrial, commercial and residential facilities by eliminating power surges and high frequency noise
  • Energy demands are on the rise and our typical resources are depleting, resulting in the world looking for alternative energy sources. Solar power is a hot topic that I am very bullish on, though the demand for uranium and Nuclear power is also increasing heavily, and Russia looks to be taking the initiative to tackle Nuclear power as a prominent energy source.

    ROSENERGOATOM (Rosatom), the operating utility of all Russia’s nuclear power plants and co-led by NNRF.PK, announced that it projects nuclear power in Russia will double to 23% by 2020, with the policy goal of reducing the usage of natural gas and increasing nuclear power. In October 2006 Russia announced a $55 billion nuclear energy program for expansion and
    development of nuclear power plants providing $26 billion until 2015. In other words, Rosatom will be responsible for funding from its revenues, from which NNRF.PK will strongly benefit as they provide goods and services to Rosatom.

    The Russian Government decided in late 2006 that it would create one large holding company for Russia’s nuclear industry, creating an international powerhouse. An interesting and very speculative fact of this newly to-be-formed corporation known as Atomprom is that NNRF.PK has strategic alliances with two of the four companies that will be forming the single holding company Atomprom:

  • Rosenergoatom(Rosatom) [REA] - nuclear power generation (alliance with NNRF.PK)
  • TVEL - nuclear fuel producer and supplier
  • Technabexport (Tenex) - state-owned uranium trader
  • Atomstroyexport - foreign trade in equipment, (alliance with NNRF.PK)
  • ROSATOM is responsible for insuring nuclear and radiation safety in all phases of nuclear power plant operations in compliance with Russian Federation legislation and to provide scientific and technical support. ROSATOM operates all ten state-owned Russian nuclear power plants.

    Increasing demands on technical safety regulations and radiation protection standards at the facilities of Russia’s nuclear energy facilities cause increasing demands on equipment, plants and technologies for the construction, modernization and operation of facilities of ROSATOM,

    NUCON-RF has entered into an agreement with ROSATOM to co-lead an international consortium of European and Russian companies to provide equipment, technologies and services to ROSATOM. (source: NUCON-RF.com)

    ATOMSTROYEXPORT" (“ASE”) was established in 1998, by the Ministry of the Russian Federation for Atomic Energy, in order to promote the export of Russian-made products for nuclear power projects abroad. ASE was created by a merger of AO "Atomenergoexport" and VPO "Zarubezhatomenergostroy

    These Russian government agencies had accumulated more than 25-years of experience with foreign countries in the construction, operation and modernization of nuclear power plants.

    ASE possesses both the experience and engineering capabilities to work in the global market. The nuclear power plants built for their customers in the Former Soviet Union, China, India and other countries constitute a future market for NUCON-RF technologies and services. The latest projects of ASE include construction of two power units (2000 MW total) in China, two power units of similar capacity in India, as well as activities in Eastern Europe.

    A consortium led by Moscow based Atomstroyexsport has been awarded a contract, a portion of which is for the stabilization of the existing Chernobyl shelter environment that is contaminated with radioactive dust and debris. The contract was signed between SSE Chernobyl and Atomstroyexport on 15 July 2005 for USD 45 million. The contract reference number is SIP-07-1-001-02. In order to expeditiously proceed with the works inside the Shelter that have been delayed due to health problems created by the radioactive dust, ASE entered into an agreement with NUCON-RF in December, 2005 to become project partners at Chernobyl to provide material(s), technologies and services that can reliably suppress and encapsulate radioactive dust. The materials will address the immediate tasks of safety of the works, as well as long term tasks of safe maintenance of the shelter and the future possibility of the removal of the debris and its safe transportation and disposal.

    NUCON-RF will provide, on an exclusive basis, a patented technology, NuCapTM, a highly radiation resistant silicon-geopolymer already applied under field conditions in the Shelter to cover the highly radioactive pile of the fuel containing masses. There is an estimated 45 tons of radioactive dust at Chernobyl #4. NuCapTMhas been tested at Chernobyl Reactor #4 since 2000 and these tests have conclusively proven that NuCapTM is durable under the most extreme environmental conditions, it is proven to be resistant to both radioactive environmental and corrosion conditions. It also has been proven to provide excellent encapsulation qualities; these will be necessary for final disposal, in addition to the present task of radioactive dust suppression. (source: NUCON-RF.com)

    Nucap is a material licensed through Global Matrechs (GBRM.OB), a company that is also prone for speculation as it had a huge spike in volume and a 200% rally in Monday's session.

    It has been rumored that the newly formed Atomprom will eventually be listed on a major exchange, which could raise a you know what load of money for Russia’s nuclear program and highly benefit expansion for the future, as well as contribute to NNRF's ability to maximize sales. We could also speculate, given NNRF’s close association with the newly-to-be-formed Atomprom corporation, a possible buyout of NNRF. NNRF recently filed with the SEC to become a fully reporting company with plans to move to the OCTBB and the ultimate goal to be listed on the AMEX.

    NUCON-RF also has alliances with three other companies.

    Promising Acquisition

    NUCON-RF finalized the 50% acquisition of ATOLL in March of this year, making a great leap in their growth strategy. ATOLL realized 43m in revenues for 2006 and expects $120m in revenues in 2007 on profit of $22m. NUCON-RF will receive quarterly dividends as payments and expect their first payment this month of $247k from the fourth quarter of 2006. This payment only accounts for 13.25% ownership of ATOLL as they just finalized the total 50% acquisition. Payments in 2007 will realize the full 50%. ATOLL manufactures products specializing in nuclear machinery. Their primary purchaser is yes, Rosatom. One of the four companies merging into Russia’s nuclear powerhouse Atomprom.

    April 3, 2007:

    NUCON-RF receives certification to sell Nu-Cap in the Russian Federation:

    “NUCON-RF holds an exclusive agent license for NuCapTM in the Russian Federation and other CIS countries from Global Matrechs (GBMR.OB), Inc., which has the geopolymer NuCapTM manufactured at Dow Corning. NUCON-RF will now place an initial order with Global Matrechs for sufficient base materials to proceed with further engineering and testing of various types and forms of applications. NUCON-RF was previously prevented from proceeding with these engineering studies until it received the certification to sell NuCapTM up in the Russian Federation.”

    April 17, 2007:

    NUCON-RF announces execution of agreement for the solution to radioactive liquid wastes present in nuclear sites worldwide

    NUCON-RF entered into an agreement with Aspect, the official managing company in the development of international and Russian environmental projects for the Federal Ministry of Nuclear Energy of the Russian Federation and Rosatom.

    The subject of the agreement between “ASPECT” and NUCON-RF, Inc. is to engage in joint efforts in the implementation of complex technologies and equipment on the basis of a gradient-porous metal-ceramic membrane known as “TRUMEMTM”. TRUMEMTM is a high-output, long-lasting, inexpensive and compact purification unit for all types of liquid wastes, including radioactive wastes. These technologies are the basis for a technological breakthrough in solving the current problems of radioactive liquid wastes. Presently, these problems are fundamentally unsolved at nuclear sites worldwide.

    This technology has been successfully developed, produced and operated within closed Russian nuclear facilities. The agreement provides the basis to introduce these technologies for the first time to the global nuclear marketplace. NUCON-RF believes that implementation and roll-out of this technology will provide an effective solution of problems connected with environmental safety at nuclear power sites, and particularly the rehabilitation of water basins which have become contaminated with liquid radioactive wastes.


    High Class Management

    Former Vice Chairman of Prudential Mutual Fund Management Appointed NUCON-RF Chairman:

    2006-12-21 08:00 ET - News Release

    MOSCOW, Dec. 21, 2006 (PRIME NEWSWIRE) -- NUCON-RF, Inc. (Pink Sheets:NNRF) today announced that Lawrence C. McQuade, formerly Vice Chairman of Prudential Mutual Fund Management and Executive Vice President with W.R. Grace & Co., will join the Company as Chairman of the Board as of January 15, 2007. Mr. McQuade, who since 1995 has interfaced extensively within the Russian financial industry as a fund manager and consultant, will be primarily responsible for guiding NUCON-RF in its business mission within the Russian Federation, in selected European and Asian markets and the financial markets of the U.S.

    CEO: Russia's former Deputy Nuclear Power Minister Valery Zubov, Russian Member of Parliament, Joins NUCON-RF Board of Advisors:

    MOSCOW, Dec. 5, 2006 (PRIME NEWSWIRE) -- NUCON-RF, Inc. (Pink Sheets:NNRF) today said that Professor Valery Zubov, Ph.D., Member of the Russian Federal Parliament Committee on Credit Organizations and Financial Markets, has joined the company's Board of Advisors. Mr. Zubov will counsel the company in the marketing of its nuclear waste and power quality equipment technologies in the Russian Federation.

    Conclusion:

    With Russia taking a huge initiative in the nuclear power industry, and forming a single nuclear powerhouse corporation that NUCON-RF will be associated with from multiple angles, NNRF looks like its making the right steps in becoming a huge contributor to the nuclear development in Russia. NUCON-RF’s acclaimed management team leads me to believe that this pink sheet company is the real deal and their expertise will lead the company to success and potential for massive growth. It’s hard to produce any fundamental evaluation for NUCON-RF currently as they’re not a fully reporting company yet, though recently they raised their estimates of revenues of 50-100m over the next five years to $200m. NUCON-RF is still a relatively small company at $206m cap = 40m o/s shares x 5.16. Given the recent rally as high as 900% in the last six weeks I think we should expect some profit taking and consolidation before a continuation would occur. I currently do not own NNRF, though I will be looking for an entry in the near future.

    Disclosure: none