Wednesday, January 11, 2006


SA Mining Co. Turns To 'Dumps' For Uranium

The Business Report looks at the operations of a mine in South Africa. "Simmer and Jack (Simmers), the marginal gold mining company that left the JCI stable in July last year, has a bright future based on the uranium deposits in its gold mine dumps as well as its underground reserves."

"This is according to gold mining analyst Nick Goodwin, who said yesterday that the Harties and Buffels mine of Simmers was rich in uranium, which was booming as the world had to move from fossil fuels to nuclear power. Goodwin said Simmers was instituting a project to mine the dumps for uranium."

"Simmers has three divisions, the shallow gold mining at Pilgrims Rest; the Harties and Buffels mine; and the Randfontein Foreshaft. The Pilgrims Rest division will provide 15 percent of Simmers earnings, the other two will provide 50 percent and 35 percent, respectively."

"An analyst who asked not to be named said Simmers' prospects were tied to the gold price and the rand. 'Typically, the grades of uranium are not very high and what will be important will be the price of extracting the metal.'"

"Simmer and Jack's chief executive, Gordon Miller, said the uranium prospects were 'very exciting' because of the rapid rise in the spot price of the metal, currently $36.50 (R222.65) a pound, rising from $10 a pound two years ago."

If this chart is correct, the train may have already left the station on this stock. Insight into trading South African stocks is appreciated!

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