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Uranium: Price is booming

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uxc_graph_u3o8_2yr.gif

 

there are two good threads on advfn, with charts:

(note: registering is FREE, but if you want a quick look,

try, user: geologic // password: gl4ad )

 

New Uranium. thread : http://www.advfn.com/cmn/fbb/thread.php3?id=6450128

Athabasca Basin Play : http://www.advfn.com/cmn/fbb/thread.php3?id=11066645

 

URANIUM...

+ HEATS the earth's core as it decays, causing continental drift

+ DISCOVERED in 1789 by German chemist Martin Klageroth

+ NAMED for the planet Uranus, discovered eight years earlier

+ UTILISED in 1800's to color glass and ceramic

+ FOUND in most rocks and seawater

+ MINED in Canada, top producer: 10,457 tons (2003)= $ 460 million

+ MELTS at 2,070 degrees fahrenheit

+ FUELS almost all of the world's 441 nuclear reactors: 16% of World's electricity

 

Most imbalanced commodity:?

Supply: 90mn lbs / Demand: 170mn. lbs (p.a.)

+ 80% use for power plants.

Russia is breaking down nuclear weapons: an important source?

India & China: opening two new plants per year for foreseeable future

Current Usage, examples:

China : 1.5% from Nuclear

U.S.A : 20.%

France: 60-70%

Lithuania: 90%

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DIVERGENCE DAY... for Uranium stocks

 

Rough Day for Cameco (CCJ) $34.41 -1.50 -4.18% 3.8million shs

 

Good day for:

 

+ Aldershot Res (v.ALZ): $0.37 + 0.05 + 15.6% : 1.9million shs

 

+ Canalaska ... (v.CVV): $0.62 + 0.12 + 24.0% : 3.5million shs

 

+ Uranium Power (v.UPC): $0.74 + 0.04 + 5.71% : 1.9million sh

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TROUBLE AHEAD ? asks Doug Casey ...

 

1143494116-MervUraniumIndex.jpg

 

Although I usually pay little mind to the short-term fluctuations of the markets, it seems worth investigating whether the junior uranium sector is sagging under the weight of so many new players. To get an idea, our resident snap technical analyst Merv Burak put together an index of 51 junior companies… all those that have been around for a year or more and that are primarily focused on uranium.

. .

I’m concerned about the flood of new uranium companies out there, but we’re looking at something comparable to what happened during the Internet boom; when the public becomes involved, the top is going to blow off this market. But as yet, the public barely even knows how to spell uranium; and they don’t have a clue they can buy shares of companies that explore for it. My guess is that we’re not even midway through this bull market, and when we enter the final stage, the chart above will no longer just be a gradual upward curve but a hyperbolic curve. Someplace between now and then I’ll be a seller—but at the moment I remain a buyer.

 

Whole article: http://www.kitcocasey.com/displayArticle.php?id=627

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Athabasca Basin, is the where the richest Uranium orebodies have been found.

 

diagram1.gif

"the largest high-grade uranium deposits in the world"

• McArthur River 235,164 tonnes of uranium at 19.60 % U (520 mn lbs at 23 % U3O8)

• Cigar Lake.... 134,541 tonnes of uranium at 15.50 % U (350 mn lbs at 18 % U3O8)

 

The main companies active in exploring for Uranium in Canada's Athabasca Basin:

 

t.CCO Cameco........ 348.7 $42.00 $14.6 Bn

v.UEX UEX Corp...... 169.2 $ 4.85 $820.5mn

t.SXR SXR Uran. One. 15.34 $ 7.69 $118.0mn

v.STM Strathmore Ur. 52.29 $ 2.19 $114.5mn

v.FCO Formation Cap. 162.0 $ 0.38 $ 61.5mn

v.JNN JNR Resources. 68.53 $ 0.83 $ 56.9mn

v.DJE Dejour Ent.... 29.23 $ 1.25 $ 36.5mn

v.NWI Nuinsco Res... 95.00 $ 0.28 $ 26.6mn

v.PXP Pitchstone Ex. 22.76 $ 1.05 $ 23.9mn

v.TXM Triex Minerals 8.692 $ 2.49 $ 21.6mn

v.CVV Canalaska Ven. 46.32 $ 0.46 $ 21.4mn

v.MM- Magnum Uranium 16.66 $ 1.10 $ 18.3mn

v.ESO Eso Uranium... 14.60 $ 1.10 $ 16.1mn

v.FDC Forum Develop. 25.92 $ 0.45 $ 11.7mn

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On the weekend we had Australia sign a uranium supply deal with China. Now some more mainstream sources are carrying the uranium story.

 

http://www.marketwatch.com/News/Story/Stor...hoo&siteid=yhoo

 

JUPITER, Fla. (M&M) -- The hottest metal isn't gold or silver -- it's uranium. Prices are up 80% in the past year and 13% just since the beginning of this year. Have you missed the big move? Not by a long shot.

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I was looking around at trusts and found City Natural Resources High Yield Trust plc holding a Canadian mining stock - SXR Uranium One as mentioned above Market Cap $142 million. Anyone any experience of this one ?

 

TrustNet

 

SXR Uranium One, Incorporated

 

Engaged in the acquisition, exploration and development of properties in Australia, and most recently in China, for the production of uranium using the ISL process.

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The U stocks that I currently own are:

 

Aldershot (v.ALZ) : thru wts.

Canalaska (v.CVV)

Formation (t.FCO)

ISX Corp. (v.ISX)

Magnum (v.MM)

Mawson (v.MAW) : will add in the C$1.15 placement

Uranium Power (v.UPC)

 

and I plan to buy some: Uranerz in the next few days

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The U stocks that I currently own are:

 

Aldershot (v.ALZ) : thru wts.

Canalaska (v.CVV)

Formation (t.FCO)

ISX Corp. (v.ISX)

Magnum (v.MM)

Mawson (v.MAW) : will add in the C$1.15 placement

Uranium Power (v.UPC)

 

and I plan to buy some: Uranerz in the next few days

Isn't ALZ supposed to annouce some prelim drilling results soon?

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Guest Guest
The U stocks that I currently own are:

 

Aldershot (v.ALZ) : thru wts.

Canalaska (v.CVV)

Formation (t.FCO)

ISX Corp. (v.ISX)

Magnum (v.MM)

Mawson (v.MAW) : will add in the C$1.15 placement

Uranium Power (v.UPC)

 

and I plan to buy some: Uranerz in the next few days

Thanks for those pointers above. Im gonna have a looksee.

 

I've done very well with the uranium ETF "U" on the TSX. Looks a bit toppy though, may ditch 25% of my stake.

WTTW

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Guest Guest_walktothewater_*
The U stocks that I currently own are:

 

Aldershot (v.ALZ) : thru wts.

Canalaska (v.CVV)

Formation (t.FCO)

ISX Corp. (v.ISX)

Magnum (v.MM)

Mawson (v.MAW) : will add in the C$1.15 placement

Uranium Power (v.UPC)

 

and I plan to buy some: Uranerz in the next few days

Thanks for those pointers above. Im gonna have a looksee.

 

I've done very well with the uranium ETF "U" on the TSX. Looks a bit toppy though, may ditch 25% of my stake.

WTTW

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Dont forget to have a look at those threads on Advfn (see header),

if only for the charts

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(Steve Saville comments on Uranium stocks):

 

Update on Uranium Stock Selections

=====

 

(Note: To review the complete list of current TSI stock selections, logon at http://www.speculative-investor.com/new/market_logon.asp and then click on "Stock Selections" in the menu. When at the Stock Selections page, click on a stock's symbol to bring-up an archive of our comments on the stock in question)

 

We usually won't consider adding an exploration-stage stock to the TSI Stocks List unless we believe that a) there is a good chance of the company being able to achieve strong growth in its resource base, AND B) the stock is under-valued or, at worst, fairly valued based on the resources that have already been defined to measured-and-indicated status. In other words, good exploration potential is generally not enough by itself; we usually want the downside protection provided by a proven resource base that is currently being priced at a discount to fair market value. There's also the issue that we have no idea how to assign a dollar value to a company that has nothing other than the POSSIBILITY of its exploration activities finding something valuable.

 

Occasionally, though, we make an exception, and today's new inclusion in the TSI Stocks List is an exception in that the company has not yet officially proved-up (defined to NI 43-101 or JORC or SAMREC requirements, that is) any resources. The new inclusion in the TSI List is Mawson Resources (TSXV: MAW), a company focused on exploring for uranium and gold in Sweden.

 

MAW's primary focus is on uranium and the company has several prospective uranium projects in Sweden. The company reports a POTENTIAL resource, based on historical data, of 130M pounds of uranium oxide (U3O8) across three of its projects. Here's the breakdown:

 

- Tasjo: 116M pounds

- Duobblon: 11.6M pounds

- Klappibacken: 2M pounds

 

None of the above resource estimates currently meet NI 43-101 requirements so they should not be relied upon for valuation purposes. They are, however, based on extensive exploration work carried out in the past. The resource potential estimated for the Tasjo project, for example, is based on the results of 190 drill holes.

 

The main reason we are going to add MAW to the TSI Stocks List at this early stage of development is that the company's market valuation is low enough that it will be a value proposition even if the actual resource proves to be only one-quarter the current 'guesstimate'. To be specific, MAW's current market cap is US$26M (26M shares at C$1.16/share), so if the resource turns out to be only 30M pounds of U3O8 then MAW would still be trading at less than US$1 per pound of in-ground uranium. This is much lower than most exploration-stage uranium companies.

 

Another reason to be adding MAW to the Stocks List at this time -- in the face of considerable general market risk -- is that the stock does not look risky from a technical perspective. As evidenced by the following chart, MAW rocketed higher between the beginning of November and the middle of January but has since been consolidating. It has retraced about 50% of its spectacular run-up and has strong support within 15% of Friday's closing price. Barring a total collapse in the resource sector of the stock market, a drop back to support at around C$1.00 probably describes the maximum downside potential over the next few months.

 

 

 

In our opinion, the two main risks associated with MAW are:

 

1. Geological: At this early stage we can't be confident that the quantity or quality of the resource will be sufficient to enable uranium to be profitably mined.

 

2. Political: Sweden's current government does not favour uranium mining.

 

Taking into account the opportunities and the risks, we think MAW is a reasonable speculation within 10% of Friday's closing price (C$1.16).

 

 

Mawson Resources, discussed above, is the third uranium position in the TSI Stocks List. The others are USEC (NYSE: USU) and SXR Uranium One (TSX: SXR).

 

USEC, a uranium enrichment company, is a conservative way to play the energy bull market. It generates around 1.5 billion dollars of annual revenue and trades at low price/earnings and price/sales ratios.

 

It would be reasonable for long-term investors to accumulate USU near the current price. In the short-term we think the stock's upside potential and downside risk are both around 20%.

 

 

 

SXR is a development-stage uranium producer with near-term production potential (the company is scheduled to begin producing uranium at its Dominion project in South Africa in early 2007). It also has significant development-stage gold assets and some current gold production. We like SXR as a long-term investment, but from a technical perspective the stock is presently 'overbought' (the following chart shows that it is at its channel top). As a result of the extended technical situation we wouldn't be doing any new buying at this time, but we also wouldn't be inclined to take any profits. Our opinion is that current owners should continue to hold and prospective new owners should wait for a pullback to near the 200-day moving average before buying.

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Any opinions about a uranium junior called Uramin? I've been having a look but am a beginner.

 

The pros seem to be an experienced, well-respected and well-connected mangement and roving brief to find previously explored properties that fell out of favour when

 

The con seems to be that their main property was left undeveloped for years because the grade is low and they are in a race with three other companies, one a major player, in Namibia.

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I dont know that one.

 

But I think most Uranium stocks are in a bubble now.

I owned many, but have only a handful left: MAW.v, etc

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So investing in Uranium is green energy investing?

 

Maybe a site name change is in order Dr B?

 

it can be argued that Uranium is 'cleaner' thank fossil fuels...

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Since writing the above, i have looked at Uramin.

 

Seems a reasonable story, at reasonable valuation- relative to other uranium stocks

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I believe uranium may well begin to outperform oil as an energy investment in the next few years. Tight supply, long mine lead times and a rush for the nuclear option from every direction imply a rapidly rising price for the raw material.

 

Here is an interesting column about the four great commodities: gold, silver, oil and uranium.

 

http://www.moneyandmarkets.com/press.asp?r...d=292&cat_id=6&

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Shoud have my Canaccord account set up early next week so I am looking for a good way to get exposure to the price of Uranium.

 

I am currently looking at the ETF U and SXR Uanium One as I remember one of the big funds is confident enough in it to hold a large slice.

 

Also looking at near term producers from the Uranium thread http://www.advfn.com/cmn/fbb/thread.php3?id=6450128

 

1. Paladin - $1.5 billion MktCap

2. Ur-Asia - $1.2 billion MktCap

3. SXR UraniumOne - $0.9 billion

4. Int'l Uranium Corp - $454 million MktCap

 

 

Main reason for posting was to ask if anyone knows of any warrants or options which may offer leveraged exposure to Uranium.

 

TIA

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I'm getting a lot of job offers from this sector of late.

 

I'm sure it's going ahead, The "Debate" may be of little consequence and the decision has already been made if they are at the hiring stage.

 

3 different agencies are all look for engineers, It look's like some big projects are coming up.

 

Some of the job's on offer:

 

“It will cost up to £1.4bn to upgrade Britain's electricity network if a new fleet of nuclear power stations is built, says the National Grid.”, Daily Telegraph 13/07/2006

 

Current and future projects mean the UK Power Industry finds itself themselves in even greater need of the services of skilled Engineers and related personnel. With a dearth of quality individuals, this means xxxx xxxxx is able to command top notch remunerations for candidates such as yourself, experienced and talented. Below is a selection of some of the positions that currently need filling. If you would like to learn more about any of them

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