Veritasing (Truth Seeking) Uranium
Veritasing = Seeking truth, liberty, and value
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Veritas Uranium Portfolio and Intrinsic Value from $24-$42-$64
Veritas Uranium Fund
Veritasing – Welcome!
Investment Structure Truths
Resource Investment Resources
Veritas Trail Approach
The “Uranium Play”: Value Bull’s Eye Speculation
Veritas Uranium Company Video Reviews!
232 Risk Reward – Wealth Rocket or Burned Money
Ur-Energy 2018 10-K Notes and Valuation
Veritas Uranium Assumptions and Starting Framework 2018-2022
WWR 2018 10-K Review Notes
2019 H1 Review August 4, 2019 VU Performance – -14.8% VU Capital Input – $6K VU Fund Size – $16,324 VU Fund Planned Series B Raise (H2 9) – $4,124. The fund is down 15%. 232 outcome resulted in the biggest blood bath I have ever seen as an investor. Some stocks down 40% in a day. Regardless, the lower the price of a business the more of the business I want to own if the cashflow and asset value is present. So…. the Veritas Fund is buying….buying aggressively and adding capitol as fast as possible to take advantage of a very large disconnect between intrinsic value and current market prices. Good and Bad News thrives in the junior commodity markets. The small size of the market can be controlled by a narrative and remain irrational for longer than efficient markets. Similar to real estate the current Uranium market is inefficient in realizing actual current value of the commodity(/location in real estate). There seems to be another trend in the cycle of U and the equities compared to Real Estate. The rule to buy in Winter is similar to buying U in August. The price of U sits at $25. July of 18 it was $24. Jan 19 it bumped to $28 due to seasonality of buying behavior of end user. The last six months come down to 2 events: 1. 232 “Outcome” (and opportunity!) The US Pres. decided against tariff for Uranium via 232 rules (similar to steel). The markets AND myself! beleived this would result in a quota for Utilities to buy 25% domestic Uranium. This did not happen and for the health of the Uranium market as a whole this is quite positive. Instead of tariffs Trump formed a 90 day Nuclear Fuel Working group tasked with solving the nuclear energy fuel cycle as a whole. The US needs to invest in enrichment capability. Currently none. It is my belief this Nuclear Fuel group is going to negotiate contracts for US producers and Utilities as well as have the DOD begin to buy 2. Cameco – Cameco is the largest player on the contracting and full cycle support for fuel. In 2018 they shut down one very large asset called McArthur River (supplied 18M of a 193M/year market!!). Back to the real estate example this would be like destroying 9.3% of houses in a neighborhood. Basically a developer of houses stops building houses and instead start to BUY them. Cameco stated intention to begin buying roughly 20M lbs. of U308 in 2019. So far they bought around 9M and need to start ramping up purchases. Cameco (the largest and almost lowest cost producer – besides a Kazakstahn Competitor similar in size with much lower production cost due to ISL mining method using acid and also zero regulations and very UNDERVALUED currency!) is not making money because it probably costs them $30-40/lb. to produce a lb. of U. So in order for them to have a margin to cover operating costs they need to have contracts at $50. Until then they will continue to buy U, shut mines that produce U, and stay conservative. Buy and Scale in – Today is an incredible opportunity in this inefficient market. There is certainly a possibility of continued weakness in the equities and dilutive financings in the small stocks we are invested in. However, we are 90% down from the highs in the market. The cycle will turn and I cannot time cycles. I can invest when the cycle is clearly not at the top. I’m a liar. Because currently I am hoping to time this market. Currently, after the irrational behavior of investors after 232 and overall fatigue and short-term focus losing lots of $$. I am growing the fund with lots of capitol from the managing partner (me). Feel free to let me know if you are looking to add risk capitol to the fund or know of a similar long-term investor. Looking forward to the next 6 months! “Patience is needed. Fear is understood but misplaced by many. Conviction is higher. Buying hurts.” Veritas24,
Veritas Uranium Assumptions and Starting Framework 2018-2022
