Topic: How To Invest

I’ve been reading up on Uranium Star. They own a large vanadium deposit in Madagascar, which is projected to be in demand not just for specialty steels, but as a key component for batteries, which various touts are citing as the answer to solving the electricity storage issue as regards green energy. What’s your estimate of the future prospects for vanadium, and this company as a supplier?

Article Excerpt

Uranium Star, $0.47, symbol URST on the Nasdaq bulletin board (Shares outstanding: 86.4 million; Market cap: $40.2 million), has vanadium prospects in Madagascar and uranium prospects in northern Quebec. However, the company is mainly focused on its Green Giant vanadium property in Madagascar. Uranium Star has applied for listing on the Toronto exchange. Vanadium is used to strengthen steel. The mineral’s value should increase as demand for steel rises with an economic recovery. As well, vanadium may be used in electric-car batteries, so it should benefit from growing demand for electric cars. Vanadium reached as high as $80 U.S. per tonne in early 2008. Today, it trades at about $30 a tonne. Uranium Star has found vanadium mineralization at Green Giant, and now hopes to define a mineable deposit through drilling. The company held just $1.5 million in cash at the end of June. So it will need to raise funds to pay for its exploration program. Its share price has…