Blackmont Capital Favors Cameco, Aurora, Fronteer Among Canadian Miners

Many Canadian mining stocks have not done very well in the past few months. Gold equities may be seeing a dramatic resurgence, but uranium players have declined as spot prices for the nuclear fuel continue to fall or remain stagnant. But Blackmont Capital analyst George Topping has faith in the uranium sector and has initiated coverage on a handful of names that he is bullish on.

The first company is Cameco Corp. (CCJ), the world’s larger uranium miner and owner of one of just a few uranium fuel conversion businesses in the world. Cameco is in a good position to grow production at its Cigar Lake mine and elsewhere, Mr. Topping said in a research note. As North America’s largest liquid uranium producer, he thinks it should be a part of most large portfolios. The analyst rates Cameco a “buy” with a C$62.50 price target.

Mr. Topping also likes Tournigan Gold Corp. (TVC/TSX-V), whose principal assets are gold and uranium projects in Slovakia. While these holdings are in higher risk countries (also Northern Ireland), Mr. Topping thinks it is worth the risk and rates the share a “speculative buy” with a price target of C$6.65.

He is also optimistic about gold and uranium company Fronteer Development Group Inc. (FRG), as well as the uranium miner it owns 46.7% of, Aurora Energy Resources Inc. (AOG).

Comments

[jayinbaker]

FYI Your article erroneously states AOG which is Aurora Oil & Gas and should be Aurora Energy Resources with the symbol AXU.TO.