Conclusion: To Invest in Sweden's Uranium Exploration or Not?
By: James Finch | Posted: 17th July 2006
Sweden should become an excellent test case for a change in Australia's Three-Mines policy. Sweden's September election could officially set back the worldwide anti-nuclear movement and further change attitudes in the European Union. This weekend's G8 Summit in St. Petersburg may have already spurred emotions for a more favorable climate toward nuclear energy.
Uranium mining, the front end of the nuclear cycle, is sometimes ignored in the greater scheme of the nuclear renaissance. Yet, if a country hopes to become energy independent, it must cultivate its domestic resources. Sweden, again, may become a test case on this point as well. One of the key points, which caught our eye about Mawson Resources, and the primary reason we discussed the company's prospects at length was its technical team. To be taken seriously, a country's mining officials want to know the personalities behind the company. As did we.
Unlike many other companies we've reviewed, Mawson assembled a proven mining team. At the top is Andrew Browne, who was the Competent Person to sign off on Australia's Jabiluka uranium project, as well as the team leader for the discovery of the Ranger 68 uranium deposit in Australia's Northern Territory. He's not alone on this team who has been credited with an exploration discovery. CEO Michael Hudson discovered the Portia copper-gold project, also having delineated and developed other minerals projects in Australia. Mark Saxon, who will oversee Mawson's exploration in Sweden, discovered the Browns Tunnel zinc-lead project in Tasmania. David Henstridge, a company director, discovered the Bigrlyi uranium project in Australia's Northern Territory.
Another feather in the Mawson hat is their financing. The world's richest man has invested in this Vancouver-based uranium company. No, not Bill Gates. According to a June 30th Reuters news service report, the world's richest man is now Ingvar Kamprad. Reportedly, Mr. Kamprad is now allegedly worth about $6 billion more than Mr. Gates. Haven't heard the name before? Kamprad founded the furniture chain Ikea, which has more than 230 stores in 34 countries. According to Hudson, Kamprad took part in the Mawson private placement. Another familiar uranium investor is the money management firm, Sprott Asset Management.
As Hudson told us, "There's less technical risk with our projects, but more political risk. People want to punt on the political change, essentially." This may well come about after September 17th. And, if it doesn't? "We have a couple of backup plans," Hudson told us. Mawson has been looking eastward at Finland, a country which soon plans to bring online the EU's first new nuclear reactor. And there is another European country with an advanced uranium project, with which Hudson is currently undergoing negotiations. By the way, having started as a gold exploration company, Mawson also has a few gold properties, eight of which have been farmed out to another junior exploration company. Mawson may be preparing for the worst, but could be celebrating a political victory in Sweden come the end of September.
James Finch contributes to StockInterview.com and other publications. Visit http://www.stockinterview.com to download your free copy of "Investing in the Great Uranium Bull Market: A Practical Investor's Guide to Uranium Stocks." You can always write to James Finch at jfinch@stockinterview.com
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James Finch is a contributing editor for StockInterview.com and other publications. http://www.stockinterview.com
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