Re: URO - Uranoz to outperform
Uranoz is now Australia's newest geothermal company, with projects strategically positioned in Australia and internationally.
The Australian Limestone Coast project is ready for commercial scale drilling ($3m previous exploration expenditure) and will target temperatures slightly higher than GRK's Olympic Dam project.
The Indian project has exhibited a thermal gradient of 100C/km (GDY, at $311m, have a thermal gradient of 60C/km) with 200C @ 2000m being the target. This is in the state of Maharashta, where numerous incentives (including a 10 year tax holiday) exist to ease the crippling power shortages affecting the booming economy and population.
The Kyrgyz project has displayed evidence of a 100C/km thermal gradient (to be confirmed shortly) and is in a country reliant on diminishing hydro-power and on the border of swelling Chinese demand.
URO is currently trading at 19c, with a market cap of $17m, and is rapidly positioning itself to become the best low-cost entry to the geothermal sector.
The company has $11.5m cash at the time of posting, enough for full commercial drilling of the LC project, and has recently appointed Dr Lambertus De Graaf, founder of GDY, as the new MD.
Cash position is outstanding. Management is outstanding. The resource may prove to be the highest grade ever confirmed outside of volcanic regions.