Caution rules spot marketUranium One in the news:
Caution rules spot market
November 21, 2007
U3O8.biz
The spot price of uranium remains unchanged for the third straight
week. According to industry indicator TradeTech, it sits at $93 a
pound U3O8 (rival indicator Ux Consulting raised its spot price $1 to
$93 on Monday). On a positive note, TradeTech said the gap between
buyers and sellers is closing, thanks to an increased willingness from sellers to move on the price.
The indicator also reported speculators and hedge funds are still very interested in buying the metal, but remain cautious after last
summer's plunge and so far unwilling enter into bidding wars over
prices.
The metal's fundamentals also appear strong, with both indicators
leaving their term prices for uranium at $95 a pound, as long-term
activity appears to be increasing.
Uranium One Inc. continues to rebuild after a supply scare chased away hordes of its investors. It was one of the most actively traded
companies on the TSX on Tuesday, though it gained just nine cents, or
one per cent, to $9.09.
Still, Uranium One has enjoyed some strong gains in recent days, after a number of analysts backed the company's transition from explorer to developer and declared the company's recent selloff---which followed a shortage of sulphuric acid at the company's Kazakh operations--was highly overblown.
Kazatomprom, the Kazakh uranium player that's eying the metal's global production spotlight, again made headlines, as its plans for a deal with China moved forward.
According to World Nuclear News, the deal that would give China a
share in Kazakhstan's uranium production in return for a stake in
China's nuclear power plants, paving the way for strong Kazakh
investment in China's nuclear industry. The Chinese government has yet to release details of the agreement.
The Resource World composite uranium stock index, based on the
performance of nearly 100 uranium companies, gained 26.94 points, or
just less than two per cent, to close Tuesday at 1,401.25. The index
continues to fluctuate, still adjusting after the recent Rio Tinto
jump---the index itself jumped nearly 17 per cent after Rio stock
skyrocketed when that company rejected a takeover bid from rival BHP
Billiton.
On the TSX, several junior explorers jumped thanks to news of
promising mineral discoveries. BC-based junior explorer Mountain Boy
Minerals Ltd. jumped 4.5 cents, or 11.3 per cent, to 44.5 cents, after releasing further drill results that indicate high-grade silver
deposits on the company's property's in British Columbia's Skeena
Mining Division.
Toronto-based Latin American Minerals Inc. gained 10.5 cents, or 28.8
per cent, to 47 cents, following the release of encouraging assay
results from a batch of rock collected at the Paso Yobai gold project
in Paraguay.
Fjordland Exploration Inc., a Vancouver-based junior explorer focused
gold and copper, jumped six cents, or 22.2 per cent, to 33 cents,
after it drilled 0.38 per cent copper at its Woodjam property, in
British Columbia.
Vancouver-based explorer Cooper Minerals Inc. gained five cents, or
8.3 per cent, to 65 cents, after releasing more "significant gold and
base metal values" at the company's Terra project north of Yellowknife in the Northwest Territories.
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