Very, very, very disappointing -- what more can be said really. Except, I thought the two new directors would buy 20 million shares each and existing directors would take their holdings up to 20 million shares each, on market.
Well, unless I missed something this confidence in UXA Resources, through director buying of stock, failed to materialize.
Uranium is now only about $50 per lb and profitability looks fairly poor. So the short term outlook should point to abandoning drilling in Arnhem Land unless RIL Australia finance all the ongoing costs.
The same goes for drilling for uranium in the Canning basin or coal for that matter. No future here in the short term.
Hopefully Straights Resources will come up with something at 9 tenements in South Australia, but that looks a very long term prospect to achieving a working mine, let alone a commercial find.
I worry about ongoing costs at Dome 5 that looks on the face of it to be a failed attempt to bring a zinc-lead-silver mine into production. Moving on to drill for gold and copper looks to be something that needs to be delayed.
Good housekeeping is what UXA directors failed to learn two years ago and now they must STOP DRILLING COSTS at all cost.
UXA Price at posting:
0.6¢ Sentiment: None Disclosure: Held
