Keeping an eye out for what’s going on in your part of the marketplace is wise. Keeping an eye out for what’s going on in similar areas of the marketplace is even more important. It is here where new sources of revenue, which you might not have even thought about, can come.
Utah Uranium Corporation, a junior exploration and development company, operates from Moab, UT in its hunt for uranium. As successful as the company has been in its search for uranium, it may actually be finding a more profitable venture forming at the moment. The company recently filed for exploration of potash adjacent to an existing potash company that has been in operation since the 1960s. Estimated reserves are always suspect in the mining industry, but in this instance, the likelihood of significant potash reserves appears fairly good. The US Geological Survey indicates that most of this part of Utah has significant deposits of potash and associated minerals. The existing concern has been extracting very reliable tonnage for decades.
The reasoning for this slight deviation in mineral focus lies in the company’s history in the fertilizer marketplace and the commodity pricing that potash currently offers. Commodities, in general, have been rampaging of late, and potash has tagged along. Potash is integral in many manufacturing processes, while also being rather important in agricultural production. Given the weak dollar at the moment, the opportunities for domestic and export customers are very positive if the company can locate and get the mineral out of the ground.
Uranium is also showing fairly positive results in the commodity pits, although they have been a bit up and down of late. This is fairly typical of a market that is working through an end-market that requires permits and legislative action. Current nuclear reactors are a stable source of sales but new plants can be proposed and stopped fairly quickly as political winds change. Nonetheless, the company has been having some successes and is proceeding at a prudent pace.
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