Upcoming weeks could breathe new life into the marUpcoming weeks could breathe new life into the market...
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August 26, 2008
Spot market quiet for the moment
Publisher: U3O8.biz
Author: Luke Brocki
The spot uranium market remains quiet this week, with little or noactivity and both Ux Consulting and Tradetech having left their weeklyspot prices untouched at US$64.50 and their long-term prices stable atUS$80 a pound U3O8.
Upcoming weeks could breathe new life into the market, however, thanksto ongoing water problems at Cameco's flooded Cigar Lake mine and anupcoming uranium symposium by the World Nuclear Association in London.Analysts feel both of these events could effectively narrow the gapbetween willing buyers and sellers.
Price publisher Tradetech reports just one spot uranium transaction inthe last week. Two new buyers have reportedly entered the term market,but no transactions have yet been finalized.
Producer Uranium One enjoyed a stock boost on Tuesday, climbing 34cents, or 9.7%, to C$3.86 on the Toronto Stock Exchange. The move comesjust a few days after the company's shares took a hit following SouthAfrica's announcement it would limit uranium exports to ensuresufficient domestic fuel supply. South Africa is that continent'slargest uranium producer, having mined more than 500 tonnes of themetal last year, and Uranium One is South African's biggest uraniumminer.
South Africa's minerals and energy minister is expected to approve thenew policy within the next few weeks. It'll be interesting to see whathappens to the miner's shares if and when that happens.
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Agence France-Presse reported Monday that energy-starved desert kingdomJordan plans to buy a nuclear reactor from a French company. Littledetails have been disclosed, aside from the fact that theas-yet-unnamed French firm is to also provide training for the staffrequired at the plant. Jordan and France signed a nuclear cooperationagreement in May.
Finally, World Nuclear News reported Tuesday beleaguered uranium giantCameco has taken a stake in a company exploring for uranium in Niger.Currently, France's Areva is the only company with operating uraniummines in the African nation, but other multinational firms holdgovernment permits to explore for uranium. According to WNN, Niger isamong the world's top five uranium-producing countries. After two daysof massive losses on Friday and Monday, Cameco stock was nearly flatTuesday, gaining 16 cents, or 0.5%, to C$30.62.