The leading developer of low waste, non-proliferative nuclear fuel technology for existing and future reactors, Thorium Power Ltd. (OTCBB: THPW), released its business update for the second quarter today.
The stock price reflected the news positively as shares increased 11 percent, or about 3 cents, to 28 cents on volume of 721,356.
Seth Grae, CEO of Thorium Power, stated in a release earlier, “We are making strides in bringing our thorium-based fuel designs to the forefront as a viable solution to nuclear proliferation concerns and environmental issues around the world. Specific to Thorium Power, in recent communications we have indicated we are actively engaged in very high-level discussions with foreign governments and global commercial entities regarding the utilization of Thorium Power’s fuel designs in existing and new reactors that are slated to be built or are in the planning stage. These discussions, confidential as they are, continue to progress diligently. We continue to be both confident and encouraged by the level of interest in our fuel designs.”
Although the company has not generated any revenues over the course of the last two years, and is operating at a loss, the company does show financial strength through its balance sheet. Thorium has a sufficient amount of working capital, which provides financial strength, but it has decreased its debt quite significantly to near 20 percent of last years level.
While generating losses, the company is doing quite well in its development stage. According to its recent press release, the company says that interest in its thorium-based fuels continue to gain momentum as a number of countries publically state their interest in the fuel source.
Mr. Grae continued, “It is quite important for both investors and industry to recognize the significant uniqueness of our fuel designs. Most importantly, Thorium Power’s proprietary technology is proliferation resistant. Quite simply, Thorium Power’s fuel designs do not produce weapons-usable materials in spent fuel. Additionally, our fuels significantly reduce nuclear waste, yielding approximately fifty percent reduction by volume, seventy percent reduction by weight, and ninety percent reduction in long-term radio-toxicity.”
Thorium is marching onward into the second half of 2007 with a positive outlook. The company plans on pursing opportunities for countries interested in its thorium-based nuclear fuel around the world.
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