David Pescod on Uranium ...
The big news today for some uranium stocks was a significant tidbit out of the United States. Georgia Power said yesterday that they have reached engineering and construction
deal with Westinghouse Electric for two eleven hundred mega watt nuclear reactors at the utility’s Vogtle plant south of Augusta.
If approved, the plant should come on line about 2016, and of course it has to pass regulatory approvals. But, the important tidbit is this could spell the comeback of nuclear power in the United States, particularly when one looks at coal prices going through the roof, and the concern
about dependence on foreign oil. Estimates for the cost of the plant is somewhere between 4 and 8 billion dollars, and nuclear plants usually have high up front costs, but low running costs. This is the first plant, if it goes ahead, to be given the ok in the United States since the 1970’s, and maybe, maybe the first of many that could change the perception for the uranium sector which is
gone from in the tank to about as bullish as you can to right back in the tank. What next?
This is the blue-chip uranium out there—Cameco, but it too, has suffered. With the news of the potential for plants being built again in the U.S., the sector does have a bit of a better day.
Meanwhile, back to Aurora (AXU.TO), and with the government decision on the moratorium the broker’s aren’t happy. Blackmont has moved their targets on Aurora from $15.85 to $10.00. Dundee from $21.00 to $14.00, National Bank from $11.50 to $5.50, RBC $12.50 to $8.00 and Canaccord has moved it from speculative buy to a sell.