Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

April Uranium Price Forecast to hit $110/Pound

Commodities / Uranium Apr 01, 2007 - 07:39 PM GMT

By: James_Finch

Commodities


Bids are due in Corpus Christi, Texas on April 3rd for the sealed-bid auction, conducted by Mestena Uranium LLC, for another modest lot of 100 thousand pounds of U3O8. “Buyers are once again expected to compete aggressively for the material,” Nuclear Market Review (NMR) editor Treva Klingbiel wrote in the monthly edition of the nuclear industry trade magazine. “Any material offered at fixed price is highly sought after by potential buyers.”

Earlier this past week, Entergy Corp’s (ETR) director of nuclear fuel told Dow Jones MarketWatch, “There’s a period where the market is going to be very ugly from a buyer’s standpoint.” The New Orleans-based nuclear utility holds the second largest number of nuclear power plants behind Exelon Corp (EXC). Jim Malone, Exelon Corp’s nuclear fuels vice president, expects the impact of the rising uranium price to impact utilities at some unspecified future date, but not now.


TradeTech’s Price Outlook for April is $95 - $110/pound, compared to the March 31st Exchange Value of $95/pound. According to NMR, no new long-term transactions were reported for March 2007, but one U.S. utility entered the market hoping to obtain more than 2.4 million pounds U3O8 for delivery between 2010 and 2013. A non-U.S. utility is evaluating offers recently received to buy 2 million pounds U3O8 for delivery starting in 2008. Another 12 utilities are seeking or evaluating offers for approximately 37 million pounds U3O8 equivalent for delivery starting this year.

How much strength remains in the uranium price momentum? In a not-yet published interview with Dr. Robert Rich, he told StockInterview that this depends upon whether major mining companies will continue buying, among other factors. During our interview, Dr. Rich discussed his recent role in obtaining material on behalf of an unnamed major mining company to honor clauses in its uranium sales contracts with utilities. According to a bio snapshot published by Yellowcake Mining (OTC BB: YCKM) in a March 5th news release, Dr. Rich has consulted or worked directly for BHP Billiton (BHP), Sumitomo Corp (SSUMF), Ontario Power Gen and several utilities, including Yankee Atomic Electric Company (a subsidiary of New England Electric Systems). Dr. Rich was recently announced as a member of the board of directors for Yellowcake Mining Inc.

According to NMR, active supply and demand dropped during March. The corresponding supply/demand ratio for U3O8 stands at 0.4. In a surprise development, two uranium loan transactions were reported in March. Several parties continue to pursue potential uranium loans. TradeTech’s Loan Rate, for the month ending March 31st, remained at 7.50 percent per annum.

Uranium Stock Indexes Moving Higher

According to TheInvestar Group, Canadian and Australian uranium stock indexes moved higher. Matthew Smith of TheInvestar reports, “Australia closed the week just off of an all-time high reached earlier in the week. Canada seems to be moving along steadily up, and I do not see anything changing right now. Right now the explorers are lagging behind those companies with proven reserves or projects close to production.”

Companies moving closer to production include Forsys Metals (TSX: FSY), which recently announced a significant resource estimation increase at the company’s 100-percent owned Valencia uranium project in Namibia. The company plans to issue a Pre-Feasibility Study shortly. Forsys plans to follow the success of Paladin Resources in this country.

One widely watched industry development is Strathmore Minerals’ (TSX: STM) exclusivity agreement with a Fortune Global 500 company. From what we understand, the due diligence is in progress regarding the development of the company’s Roca Honda project and the construction of a uranium mill in the Grants Mineral Belt of New Mexico. Also in the Grants area, independent consulting firm Behre Dolbear & Company affirmed that six properties held by Uranium Resources (OTC BB: URRE) hold 91.7 million pounds U3O8. One of those properties is also in the Roca Honda area; all six are in the Grants Mineral Belt.

New Mexico continues to heat up as privately held Neutron Energy was issued a permit to drill five holes near Ambrosia Lake. This is the third drill permit issued over the past twelve months in the state of New Mexico. Laramide Resources (TSX: LAM) recently completed drilling in the Lara Jara Mesa area, reporting encouraging results. In a March 21st news release, the company announced, “Currently Laramide is investigating options on how the (La Jara Mesa) project may be permitted and advanced to a production decision, including discussions with other parties to explore the possibility of a new, regional mill facility in the Grant's District. We believe the potential of New Mexico may be underappreciated by the market…”

To date, New Mexico has been largely ignored by investors based upon various geographical misperceptions – mostly the wide difference in sentiment between Cibola and McKinley counties in the Grants Mineral Belt. Investors have not yet realized the political climate has shifted in New Mexico.

We’ve covered uranium developments in New Mexico for the past 18 months and reported on these developments in the New Mexico Series (http://www.stockinterview.com/newmexico-series.html) and in a recent article (http://www.stockinterview.com/News/03132007/Uranium-Mining-Study-New-Mexico.html )

By James Finch
http://www.stockinterview.com

COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED
James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on and on http://www.amazon.com The weekly spot uranium price is posted on the TradeTech website every weekend at http://www.uranium.info


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in