Tragedies and disasters cause a lot of pain. Humans, however, are not the only ones that suffer. Companies around the world become victims too and may bear significant losses after such events.
Canadian uranium players were among the most badly hit companies in the days following the big earthquake in Japan. The tragedy made the price of uranium slip, and the uranium stocks on the markets did the same.
The shares of Tournigan Energy Ltd. (CVE:TVC), (PINK:TVCFF) made no exception. On Monday, the stock tumbled down by more than 30% on the Toronto Stock Exchange (TSE). The fall was accompanied with a furious trading as the turnover reached 8.2M shares – seven times the average.
Many analysts were convinced, however, that the downfall of uranium stocks would be short-term, and the prices would soon start rising up again. As it seems, Tournigan proved these analysts were right.
Yesterday, on the TSE, TVC advanced slightly by 2.56% on a large volume exceeding 4M shares. We should wait to see if this will turn into a come-back for the stock. At least for now, there are signs that TVC is perhaps starting to recover from the losses after Japan’s tragedy.
A week ago, the company provided encouraging results from its ongoing drilling program on the Kuriskova uranium deposit in Slovakia. Tournigan officials claimed to have been “pleased with the higher grade results” witnessed on the property.
At the time the news was issued, there was no favorable reaction from investors. Possibly, they will appreciate this positive development with a bit delay later this month.
Investors could find additional up-to-date details about the company from the March company’s presentation on Tournigan’s website. It is worth noting that Tournigan promises a 35.8% internal rate of return (IRR) with a 1.6-year post construction payback on its Slovakian project.
Last but not least, the company claims to have “expanding relationships” with various Slovak universities and scientific institutions.
