Strathmore Minerals Corp STHJF

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Long term uranium price still at 75--plenty of room for Strathmore to make money if can produce at 40. Think this is way undervalued. They should be in production in 2010 --Japanese co. will front them the money for long term supply agreement. Wonder if Sweetwater mill has been bought yet. October 28, 2008 Spot price drops further     Publisher: U3O8.biz     Author: Luke Brocki

Global financial uncertainty continued to trickle into the uranium market last week, prompting a further drop in spot uranium prices and the indefinite closure of a major uranium mining operation in South Africa. Price publisher Ux Consulting reduced its uranium spot price estimate by US$2 to US$44 a pound U3O8. Analysts are now waiting for things to stabilize at a point where demand would be strong enough to absorb the biggest bargains on the spot market. Rumour has it interested buyers are already waiting in the wings, but for the moment they seem to be waiting for further drops in price. They may well be waiting awhile; just last week, price publisher Tradetech reported that sellers were resistant to offer material at the then lowest bid levels. Tradetech also reported on the emergence of new demand, with a non-US utility seeking 450 thousand pounds U3O8 equivalent for delivery before April 30, 2009. Offers were due October 24. We'll know soon enough how high those offers were and what impact they will have on the floundering spot uranium market. The UxC long-term price remains unchanged at US$75 a pound U3O8, which means uranium's long-term price now sits US$31 higher than the spot price. Bullish analysts feel that price disparity cannot be sustained for long and look forward to the spot price playing catch up. According to a weekly uranium update from Toll Cross Securities Inc., uranium futures continue to enjoy an upward trend through 2010, trading as follows: November 2008 futures are trading at US$45, December 2008 futures at $46, March 2009 at US$53, June 2009 at US$55, September and October 2009 at US$56, December 2009 at US$57, and March 2010 at $63. The Toll Cross Junior Uranium Index fell 4% last week, dropping to 117.31 from 122.23. Week-over-week, junior explorers were down 15%, advanced explorers down by 11%, production visibility companies down by 12%, and producers down 2%. One major producer was down much more than 2%. Shares of Uranium One are down more than 90% in the past 12 months and now the beleaguered miner is down one mine. Uranium One announced last week the closure of its Dominion mine in South Africa, once the company's flagship project, blaming capital overruns and falling uranium prices. Analysts are assuming the mine will stay on care and maintenance for two years until Uranium One comes up with a long-term plan for the project. Standby costs are expected to run US$1 million a month, in addition to a US$30-million up-front bill, but a crippling cash crunch is not expected for the miner. Bulls, as bulls go, are even finding positive news in the Dominion shutdown. For starters, Uranium One is expected to meet forward sales contracts from Dominion of about 4.2 million pounds of uranium through inventories, production from other mines, and spot purchases. The last of that list is keeping analysts happy, for it has potential to stimulate a spot market desperate for buying interest