Spot Uranium Price to Record $72/PoundHello all,
Merry Christmas in advance!!
https://www.stockinterview.com/News/12162006/uranium-price-feeding-frenzy.html
"As StockInterview.com predicted a week ago, uranium sellers got what they were expecting - a price bump. For the week ending December 15, the weekly spot uranium price indicator jumped by $7/pound, or more than 10 percent, to $72/pound per pound U3O8. According to Treva Klingbiel, editor of Nuclear Market Review, this was “the single largest increase reported since NUEXCO began publishing prices in 1968.” TradeTech posts the weekly spot uranium price change on the company’s website – https://www.uranium.info
The price increase resulted from a number of bids for an offering by a U.S. uranium producer of 260 thousand pounds of U3O8. According to Klingbiel, “The producer received multiple bids with the winning bid at, or very near, today’s Uranium Spot Price indicator of $72/pound.”
At least nine buyers remain active in the market seeking about 5 million pounds of U3O8, according to TradeTech, which releases the weekly spot uranium price indicator through widely followed industry magazine, Nuclear Market Review. Klingbiel reported this week’s auction of uranium created a ‘feeding frenzy’ among buyers, writing, “Meeting this expectation, competition was indeed fierce, as buyers exhibited a willingness to pay a strong premium in order to purchase material at a fixed price.”
Looking ahead, one U.S. utility hopes to secure 3.5 million pounds for delivery in 2012. A non-U.S. utility seeks to secure 10 million pounds for delivery starting in 2009. Another two non-U.S. utilities are attempting to purchase more than five million pounds in the long-term market, starting as early as 2009. Fifteen more utilities are evaluating long-term purchases for more than 35 million pounds for delivery between 2007 and 2020. Only one U.S.-based seller is currently evaluating bids for 1.2 million pounds of uranium for delivery as early as 2008.
Clearly, the spectacular price rally of 2006 will continue into early 2007 as the impact of the flooding at, and subsequent delays of uranium production from, Cameco Corp’s Cigar Lake project in northern Saskatchewan. Because of the past two week’s news reports, there was concern about the Department of Energy future auctioning from uranium inventories. These auctions may not begin to take place until mid 2007."
Please see my post below:
Romarco (R: TSX-V): When dreams are to become reality!!
What do you look for in an investment exploration play?
Here's a very brief list (within large selection criteria):
- Top management with experience and notoriety;
- Significant financial and institutional backing;
- Favorable sectoral macroeconomics;
- Near term production status (at least as an ambition);
- Properties with prior production, better yet with an estimated extracted quantity priced today at over 3 485 500 000 US$ (Old Pinos District)!! This is assuming 628.30 US$/oz gold x 5 000 000 oz AND 13.76 US$/oz silver x 25 000 000 oz.
The areas of most interest are vein intersections, which reportedly have resulted in many bonanza gold zones in the Pinos District.
Since veins from the Old Pinos District converge in Catanava (New District) and assuming the estimated grades to be accurate, Romarco will likely obtain assay drilling results in excess of 60 gr/ton gold and 500 gr/ton silver. If so, the company's future news release will send shockwaves through the markets, internationaly even. Market capitalisation will then in short time skyrocket to an eventual equilibrium (and a very big ROI), making many people rich in the process!! Let's not forget the Old District...
We are fortunate enough to know of such a company and to be shareholders of it (or potential ones)!!
In Catanava's veins riches abound!!
After discussing with the CFO last week, here's the projected timeline (projected thus not set in stone):
Assay results from channel sampling at Pinos district : End of January or very beginning of February (the program spans from 4 to 5 weeks then the lab…).
Drilling at Pinos district, Catanava site : Will begin early January (on or around January 8th) on a 180 day campaign.
First assay results from drilling at Pinos district (Catanava) : Near the end of March.
Drilling at Pinos district, historical site : end of 2007 or during 2008.
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In the near future (once Pinos assay results are known) the company's market valuation will fully be derived from its Mexico assets. Good news: we have institutional holders based in Canada, USA, Switzerland, UK and Australia, so news can have international reach. Also, let's not forget us retailers number of shares: More or less 18 million shares (currently 20% of shares outstanding). Thus, share price lifts can be sizable.
BTW Diane Garrett, President & CEO, gave a presentation at the Dubai Mining Congress (MineLLC) on November 1, 2006. The webcast presentation can be heard at:
https://events.onlinebroadcasting.com/minellc/103106/index.php?mode=1&sel_date=1
Valuation_