URZ seems to have less reserves than URG (M&I of 12 MM lbs. vs 20 MM lbs).
URG is currently producing while URZ is expected to initiate production by year-end.
Production levels and production costs for both companies are projected to be about the same.
Market cap on URZ is lower ($89 MM including the new share issue vs $132 MM for URG).
Current share price compared to peak share price much lower for URZ than URG.
Wld like views on which is likely to have better upside.
Most of us on this board own both companies already. URG will more than likely pop first as it reports its first haul, but I'm not going to unload my shares of URZ to buy more shares of URG. Upside potential is way too promising on both companies. I already have 300K shares of URG and 600K shares of URZ. Besides I know there will be a global nuclear renaissance reemerging within the next 2-3 years regardless of TEPCO. If you haven't noticed the amount of Japanese protestors has dropped dramatically as the costs of energy has skyrocketed for all Japanese power consumers. Initially hundreds of thousands protested and the latest only about 9000 protested which is a gauge of higher fuel costs associated with fossil fuel imports. Besides European utilities have recently stated that renewable energy subsidies are much higher than nuclear subsides and are not sustainable. I'm not against renewables but energy structures dictate that 25 percent of grid sourcing is max when it comes right down to costs. There have been huge gains on global nuclear deals and policy in the last 6 months alone. The only issue that has yet to be finalized is spent fuel and waste storage. This needs to be addressed to prevent proliferation incidents from terrorists groups. Activists need to step aside so safety measures can be implemented. I for one would fault activists and environmentalist directly if we have a site storage incident since the repository is being put on hold due to their selfish ignorance of just how bad things could get in event of a onsite utilities attack. If these risks are mitigated then nuclear becomes much more promising in the long run as technologies advance.
I'm curious what your take is on UEC, I switched to URZ just a bit ago believing the payoff would be better here, for what I think might be novice reasoning. What interests me is that is seems that the potential of URZ appears to exceed that of UEC, what's making UEC's shares rise quicker in comparison? Is it just the fact that they are in production?
Never mind the naysayers. It's a reasonable question. My own simple analysis gives URZ an edge in profits per share and, at the current share price I think URZ has more room for appreciation. However, they're both startups. The future value of either stock will depend on financing and their management's ability to execute their individual plans and the price of uranium in the near and medium term.
URZ's management is extremely experienced at exactly what they're doing now. I believe they've understated their reserves, which are higher grade than URG's and they've contracted much of their production on favorable terms instead of having to sell it into the spot market. They've been forced to sell shares into a weak market while waiting for their Wyoming Industrial Development Bonds to be approved, but still have far fewer shares outstanding than does URG.
Having sold many more shares in the past, this time URG scored a large short term loan to carry them until their own Development Bonds are approved and they opted for a cheaper, quicker route to production. URZ assure me eventually URG's evap pond will leak and require costly remediation. Perhaps so, but that might be years down the road, an eternity to an investor.
If you're in the area, I suggest arranging site visits to see what each operation looks like and to hear directly from the people on the ground. They'll give you insights you won't get from a press release.
I know more about URZ. I see short, medium and long term potential being very good. Reserves are proven and high grade. They will likely grow as more exploration on existing property is done. URZ has good contracts to sell already and if price goes up the u308 will be worth up to triple medium term, hence new contracts will bring much higher margins. Low debt too.