Eastern Platinum and First Uranium Top Raymond James' Favorites List

Raymond James uranium and junior mining analyst Bart Jaworski was picking favourites Tuesday with First Uranium Corp. (FURAF.PK) and Eastern Platinum Ltd. (ELRFF.PK) topping the list.

In a Q2 quarterly preview note, he said:

We recommend buying First Uranium and Eastern Platinum ahead of the quarter based on attractive valuation and expected positive quarterly results.

Regarding First Uranium, the analyst said the company is starting to show a relatively solid track record of achieving milestones at its wholly-owned MWS and Ezulwini operations in South Africa. 

The analyst told clients:

Some may be surprised to learn that the company already produces at an annualized rate of 34,000 ounces of gold per year at the MWS tailings retreatment facility and has just begun producing gold (from its own plant) at its Ezulwini underground operation.

He said First Uranium's share price, which is down more than 40% year-to-date, reflects in part a discount related to its South African peer Uranium One Inc. (SXRZF.PK). But unlike Uranium One's Dominion uranium-gold mine, Mr. Jaworski said Ezulwini has wider minable reefs, higher gold grade, decades of historic production and mineralogy which is non-refractory.

He upgraded First Uranium to a "strong buy" and maintained his C$9.50 price target.

The Raymond James analyst also upgraded his rating on Eastern Platinum from "outperform" to "strong buy" but lowered his target price on the stock from C$4.20 to C$3.80 to reflect a more conservative stance at Eastern's Crocodile River project in South Africa.

He told clients:

Despite the lower target, we believe the current sell-off in the share price is a buying opportunity. We believe the market has over-reacted on demand erosion fears while losing sight of the fact that producers are falling short of production.

Shares in Eastern Platinum, which has been hit hard the past few months, falling more than 60% since hitting a 52-week high of $4.18 in early March, are currently trading at roughly $1,170 per ounce platinum, representing a 43% discount to Raymond James' 2008 platinum price forecast of C$2,051 price target.

Mr. Jaworski cautioned investors on Paladin Energy Ltd. [PDN.TO], due to its "rich valuation" and Uranium One and Denison Mines Ltd. (DNN) on recent production downgrades and sovereign risk concerns combined with prospects for negative quarterly surprises.

Comments

[waldipup:]

"Shares in Eastern Platinum, are currently trading at roughly $1,170 per ounce platinum, representing a 43% discount to Raymond James' 2008 platinum price forecast of C$2,051 price target."


What is the significance of that?

It should trade at the actual price forecast?

It seems top me that one half that forecast is quite high a valuation in itself?

2008 Aug 06 09:00 AM

[rhj123:]

Mineral companies operating in Africa have political problems that we investors may not be aware of. This alone will make any African mining investment a true gamble. Be careful....

2008 Aug 06 01:09 PM

[PFilcher:]

Bart Jaworski is either a complete idiot, or a criminal who is in bed with the syndicate behind several of these so called mining companies.

Hey Bart: Get used to these words: You are under arrest.

Coming soon...

Sep 13 03:46 PM

[PFilcher:]

Hey Bart:

Years from now, when you are bringing in shopping carts from the local Piggly Wiggly, remember this:

You either knew, or should have known.

Aint that so, Bart?

Sep 13 03:47 PM

[PFilcher:]

Seeking Alpha Nitwits:

Riddle me this: When is a junior mining company NOT a junior mining company?

When Dr. Robert Gayton is, or at one time has been, on your board of directors.

Which of course BEGS the question: Why is Seeking Alpha pushing all this tin? Anyone with eyes and a sense of fraud would pick up in a second that none of these companies are real.

Not real in the way you and I are real. Only real on paper.

Like a riddle. Like a joke. Like virtually every junior mining company listed.

All you ever had to do was read the fine print. It's so obvious it's funny. We here all think so. And we're rarely, if ever wrong.

Sep 13 03:51 PM