# Labor lifts uranium ban!



## 56gsa (28 April 2007)

surprise surprise!

http://www.theaustralian.news.com.au/story/0,20867,21637855-601,00.html




> Labor ends 25-year opposition to new uranium mines
> Sid Marris
> April 28, 2007
> 
> ...


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## Kimosabi (28 April 2007)

Now I wonder what going to happen to my Uranium Shares on Monday?


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## Spineli (29 April 2007)

In light of this comment by the PM, "Australia's responsibility to cash in on uranium", which uranium players are best positioned to gain the most from this announcement?

Here is a list of all stocks currently exposed to uranium in one way or another:
http://www.australianuranium.com.au/australian-uranium-mining-companies.htm


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## imajica (29 April 2007)

they left off  WME  and WMT from the list!!!!

Me thinks they should update their website!


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## ta2693 (29 April 2007)

I do not think there is going to be very big impact, because the result of labor meeting is just as expected.


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## Pommiegranite (29 April 2007)

I don't get it  ..please can someone explain to this novice:-

More mines=More supply..eventually.

More supply=More demand being fulfilled.

Therefore shouldn't this result in a reduction of SP of all U related stocks?


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## surfingman (29 April 2007)

Pommiegranite said:


> I don't get it  ..please can someone explain to this novice:-
> 
> More mines=More supply..eventually.
> 
> ...




Supply is far lower than demand at present, hence the continued increase in U prices(as shown in the link below), until demand is met which from what i have read is a number of years away U SP's should continue to rise.

http://www.uxc.com/uxc_uranium-prices.html


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## Pommiegranite (29 April 2007)

surfingman said:


> Supply is far lower than demand at present, hence the continued increase in U prices(as shown in the link below), until demand is met which from what i have read is a number of years away U SP's should continue to rise.
> 
> http://www.uxc.com/uxc_uranium-prices.html




...but al ot of these miners aren't producing anything yet...and SP is going up...so how much is factored in SP already?...a lot me thinks


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## Prospector (29 April 2007)

Yes I think it is more a case of SP not falling, rather than a big increase in price.  Although maybe the announcement may flush out those who were not prepared to delve into U exploration in Australia until the policy change became fact?

As a South Australian, this is all good news for our economy.  Interesting though, Rann was all in favour of scrapping the no-mine policy yet he said the "not in my state' when it comes to Reactors!  What the hell does he think happens to the uranium once it is extracted   Obviously he does not see that as his issue!


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## Fab (29 April 2007)

All good news for the U explorer who are in NT and SA. Not sure which company are the best to mine U in that states as soon as possible.
I believe AGS, PNN might be some of those for the other that are all fluff or in other states less in favour of U mining such as QLD or WA that won't show in the SP straight away. Just my thought on things.


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## jammin (29 April 2007)

ta2693 said:


> I do not think there is going to be very big impact, because the result of labor meeting is just as expected.



I would agree Ta. I feel all the up side of this decision has been added to the SP over the last month. I would go further and wonder if there is no further upside potential *from this decision* and the SP of Uranium companies suffer a (very) small correction for a few days. I can't stop that old saying "Buy on the rumour, sell on the fact" from going round and round in my head.
These are ramblings looking at a short term of a few days. Longer term (over the next couple of weeks) with all the discussion of "25 nuclear reactors to be built in Australia" etc, I think it will be positive for the SP of Uranium related companies. It would be positive because of increased publicity for the Uranium sector not because of any actual tangible and positive outcomes.


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## insider (29 April 2007)

Pommiegranite said:


> ...but al ot of these miners aren't producing anything yet...and SP is going up...so how much is factored in SP already?...a lot me thinks




Me agree I thinks


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## 56gsa (29 April 2007)

In terms of domestic expectations I think this decision has been factored in - but there have been a number of references on these forums to various media that have suggested Canadian and other OS perceptions are that Australia has an unfriendly political climate for U mining - this news may therefore come as quite a surprise to these investors (who may not be tracking the australian situation that closely).  

therefore i think you may start seeing increasing demand for quality Oz U potential producers from OS funds - this might not happen immediately though but over the next month perhaps

(maybe!?)


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## james99 (29 April 2007)

imajica: I agree - they should have included those and should update their website - it is quite misleading. They also omitted Metex Resources (Mee), which has now been granted licences in SA and NT (and also WA although it doesn't sound like WA licences will come to much if the ALP gets in).


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## TheAbyss (29 April 2007)

So the consensus seems to be that the SP has this weekends decision factored in already?

Buy in from OS companies may well be increased due to this?

My questions are, Now that the path has been cleared somewhat, why do australian companies need to go exploring offshore and what markets are they after that cannot be sold into directly via Australian U mining into the future? We do have a large resource base to work with here (the largest?). This may not impact on actual producers OS or those close to production however those OS explorers who are still in early stages may be chasing a product that is easier to source direct from Australia in the future by the end users?

Australia, the one stop resource shop for all things mineral?

Just a question as i have a slice of the namibian explorers and have a cloud appearing that needs the winds of reason to sweep them away.


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## dj_420 (29 April 2007)

for everyone who thinks this is not going to make a monumental effect on the market IMO you are wrong.

the market has priced in the _rumours_ of policy change not the _actual_ policy change. you realise this has changed the sovereign risk completely for australian uranium companies. IMO this will turn into even more of a uranium boom. more explorers listing etc.

any uranium company with significant deposits in SA will experience great appreciation in the next few weeks. does anyone realise that a lot of people would have been _waiting_ for a policy change before investing in australian uranium stocks.

i for one did not want to invest in something with an uncertain future. the appreciation of SA uranium stocks of late IMO is to do with the fact that the state is uranium friendly. NOW we have a policy change we will see much more of a run on confirmation of the rumour.

for those who dont believe me just watch on sidelines tommorrow morning as SA and NT uranium stocks are going to have a great run. i will be entering in a number of them on the open and i can actually hold now without the risk that the mines will not be allowed.

just remember the difference between a good uranium stock and a pothole explorer. the good ones has got deposits already. these are the ones that will run. 

good luck tommorrow and keep an eye on uranium watchlists!


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## investforwealth (29 April 2007)

There is a similar discussion happening in the "Odds of Uranium ban being lifted" thread.  I posted there an excerpt from an article from the Eureka Report by Tim Treadgold outlining his expectations for U stocks.  I'm not sure I agree with it all, but it's worth a read.


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## nizar (29 April 2007)

dj_420 said:


> for everyone who thinks this is not going to make a monumental effect on the market IMO you are wrong.
> 
> the market has priced in the _rumours_ of policy change not the _actual_ policy change. you realise this has changed the sovereign risk completely for australian uranium companies. IMO this will turn into even more of a uranium boom. more explorers listing etc.
> 
> ...




Good post DJ. I agree.

SA and NT uranium stocks have been effectively derisked by some degree because the decision now is official.

But do you or others think that the SA and NT stocks 2mrw will:
A) Open marginally higher or flat and run all day
OR
B) Gap up massively (big open) then get sold off

??


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## Kimosabi (29 April 2007)

nizar said:


> Good post DJ. I agree.
> 
> SA and NT uranium stocks have been effectively derisked by some degree because the decision now is official.
> 
> ...




I suspect a lot of money that has been sitting on the sidelines will now flood in.

Remember, all of the surge in Aussie Uranium Stocks has been mostly been speculative except for Companies with International Resources up until now.

Now that the PM is 110% behind Nuclear and Labour has opened the way for more mines, I think there is going to be a stack of money go into Uranium Stocks on Monday.


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## Fab (29 April 2007)

nizar said:


> Good post DJ. I agree.
> 
> SA and NT uranium stocks have been effectively derisked by some degree because the decision now is official.
> 
> ...



Which SA and NT U stocks are worth having a look at on monday ? I mean which of these stocks are near production ??


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## ta2693 (29 April 2007)

nizar said:


> Good post DJ. I agree.
> 
> SA and NT uranium stocks have been effectively derisked by some degree because the decision now is official.
> 
> ...




Tomorrow is in May. Will people be cautious?


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