Stock Alert for Uranium Resources Inc. (URRE)
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    Stock Alert for Uranium Resources Inc. (URRE)

    Uranium Resources Inc. (NASDAQ: URRE) engages in the exploration, development and mining of uranium properties. Since its incorporation in 1977, the Company has produced over 8 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where it currently has ISR mining projects. URRE also has 183K acres of uranium mineral holdings and 101.4 million pounds of in-place mineralized uranium material in New Mexico and a NRC license to produce up to 1 million pounds of uranium per year. The Company acquired these properties over the past 20 years along with an extensive information database of historic mining logs and analysis. None of the Company’s properties is currently in production.

    Share Statistics (20-Oct-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol URRE Revenue, $Mn 0.00 0.00 0.0% 0.00 0.00 0.0%
    Current price $1.39 Gross marg.
    52wk Range: $0.52-$3.98 Oper. margin
    Avg Vol (3m): 1,334,590 Net margin
    Market Cap. 130.00M
    Shares Outstanding 93.53M EPS, $ -0.18 -0.12 -33.3% -0.03 -0.03 0.0%

    Source:, SEC Filings.

    Investment Highlights

    URRE has gained 59.8% in the last five days; 43.8% in the last month; and 11.2% year-to-date.

    Shares in URRE spiked 19% on Tuesday after the Company announced the Nuclear Regulatory Commission (NRC) has reactivated its Source Materials License to conduct in-situ recovery (ISR) uranium mining in McKinley County, New Mexico. The license, which was originally issued in 1998 to URRE’s wholly-owned subsidiary, Hydro Resources Inc., has been in timely renewal status since 2003. The reactivation effectively enables the use of the license by the Company for the production of uranium as defined in the license.

    The Company said it will now proceed to renew the license for a standard 10-year term. During the renewal process, the active license may be utilized according to its present terms and conditions, which allows for the production of up to 1 million pounds per year from Churchrock Section 8 until a successful commercial demonstration of restoration is made, after which mining on other properties can begin and the quantity of production can be increased to 3 million pounds per year.

    “We are the only uranium company in New Mexico that possesses an NRC license authorizing current or new production and having it reactivated is a significant milestone which allows us to continue to move forward with our target production plans,” Don Ewigleben, president and CEO of URRE, commented in the press release.

    The Lewisville, Texas-based mining company has 27.4 million pounds of in place mineralized uranium material under its NRC Source Materials License. In total, the Company has 183K acres of mineral holdings in New Mexico and 101.4 million pounds of in place mineralized uranium material.


    Financial Summary

    URRE reported a net loss of $2.7 million, or $0.03 a share, for the quarter that ended June 30, against a net loss of $1.72 million, or $0.03 cents a share, in the year-ago quarter. The company did not report revenue.

    URRE’s cash at June 30, 2011 totaled $8.2 million, down from $11.1 million at March 31, 2011, and $15.4 million at the end of 2010. The decrease from the sequential first quarter reflects ongoing reclamation activities in Texas, the costs associated with the feasibility study and $500K of funding to collateralize the Company’s  financial surety obligations. Its cash balance at July 31, 2011 was approximately $7.3 million.


    Financial Strength (20-Oct-2011)




    S&P 500

    Quick Ratio (MRQ) 1.70 0.74 0.73
    Current Ratio (MRQ) 2.82 2.97 1.14 1.09
    LT Debt to Equity (MRQ) 1.90 18.98 12.95 102.61
    Total Debt to Equity (MRQ) 2.15 21.24 31.44 135.91
    Interest Coverage (TTM) 6.73 0.13 24.83

    Source:, SEC Filings.

    Technical Analysis



    URRE is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for URRE currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Oct20-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Cameco Corp. CCJ 19.65 7.76B 17.86 14.24 3.43 3.09
    US Energy Corp. USEG 2.54 69.24M n/a 21.17 2.33 1.66
    Industrial Metals & Minerals Median       11.31 n/a 6.50 n/a
    Uranium Resources Inc URRE 1.39 130.00M n/a n/a n/a n/a

    Source: Thomson Financial

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