Uranium Sector
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numbercruncher
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imho this was one of the few sectors destined to stagnate under labor, John dubbya Howard guaranteed us nuke reactors and that Ruddy good bloke promised we will get none 
numbercruncher
Beware of Dropbears
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Yes, there will still be overseas demand and growth, Im not sure Labor will let any tom dick and harry buy it though, Nuclear reactors have serious set up and on going costs, Im punting some serious viable alternatives will get preference over Nuclear.
Look at how much sun we get here, Solar has so got to be the best choice for us, no waste, no army of guards to keep Osama out etc etc
Look at how much sun we get here, Solar has so got to be the best choice for us, no waste, no army of guards to keep Osama out etc etc
Valid point mate but geez it takes a lot of acreage to put up the solar panels. I would have thought it would be in Australia's interest to increase the number of uranium mines especially with the close of Cigar Lake in Canada. Australia has about 40% of the world's uranium. Surely it's gotta be worth a lot of money to the Gov't.
numbercruncher
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Yes it would take up alot of room for sure, If every rooftop had a panel thou ... Feeding the grid all day ...
Yes our Uranium deposits are massive for sure ...... Be interesting to see how the sector plays out, I always found it amusing how Dubbya was encouraging Johnny to build reactors (guess who would of designed/build them)
Heres a decent read about how much panel scientists think we would need, seen as we are the most sundrenched country on earth they say it is the best choice , Id like to see it all costed.
http://www.news.com.au/story/0,23599,22842841-1702,00.html
Maybe solar wouldnt be sooo expensive, get our friends in China to whack out the panels for us ?
Yes our Uranium deposits are massive for sure ...... Be interesting to see how the sector plays out, I always found it amusing how Dubbya was encouraging Johnny to build reactors (guess who would of designed/build them
)Heres a decent read about how much panel scientists think we would need, seen as we are the most sundrenched country on earth they say it is the best choice , Id like to see it all costed.
http://www.news.com.au/story/0,23599,22842841-1702,00.html
Maybe solar wouldnt be sooo expensive, get our friends in China to whack out the panels for us ?
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good luck with solar panel idea.
I have not fully researched the solar panel solution but can someone tell me what and how much of each material goes to making one solar panel. Also how much energy is required to make a solar panel and how much electricity this panel can produce annually.
If which I doubt if we have excess electricty produced by solar panels feeding back to the grid how do your store this excess electricity for future use?
anyones feedback will be appreciated.
Isn't electricity produced on a demand basis...
don't get me wrong solar will play a considerable part in electricity production but something is required for based load electricity generation
I have not fully researched the solar panel solution but can someone tell me what and how much of each material goes to making one solar panel. Also how much energy is required to make a solar panel and how much electricity this panel can produce annually.
If which I doubt if we have excess electricty produced by solar panels feeding back to the grid how do your store this excess electricity for future use?
anyones feedback will be appreciated.
Isn't electricity produced on a demand basis...
don't get me wrong solar will play a considerable part in electricity production but something is required for based load electricity generation
G'Day Insider
Actually I think you're right it did start to take off about now. It's weird really I thought it would have moved earlier but I guess the nthn hemisphere winter has a bit to do with it also. The indicators are still strong so I guess having bought in at post $1 I'll ride it out for a bit longer. Thanks for your comment
Actually I think you're right it did start to take off about now. It's weird really I thought it would have moved earlier but I guess the nthn hemisphere winter has a bit to do with it also. The indicators are still strong so I guess having bought in at post $1 I'll ride it out for a bit longer. Thanks for your comment
I agree, December should be a rally.
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Coal and Uranium may well be among the few commodities to move on in 2008 as major economies slow. Possible that mining investors may evacuate the major booming mining sector in favour of Uranium, that has dropped back.
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The main reason the Uranium sector has been stagnating atm is two fold.
Firstly the spot price of Uranium took a very big hit and dropped from about $135/lb to $65/lb and secondly any of these type of stocks will pull back if there is doubt over the continual growth rate of the world economies.
The spot price is quite irrelevant to a lot of producers as the majority of them have contracts locked in place and in the case of my favourite and owned producers Paladin they have fixed contracts with room to re-negotiate should the spot price increase above a nominated price.
If you look at the amount of new power plants to be built in just China alone over the next few years, not too mention the pressure that will come from global warming i believe that the current spot price of $93/lb will seem like a spec of sand on a beach in the years to come.
Firstly the spot price of Uranium took a very big hit and dropped from about $135/lb to $65/lb and secondly any of these type of stocks will pull back if there is doubt over the continual growth rate of the world economies.
The spot price is quite irrelevant to a lot of producers as the majority of them have contracts locked in place and in the case of my favourite and owned producers Paladin they have fixed contracts with room to re-negotiate should the spot price increase above a nominated price.
If you look at the amount of new power plants to be built in just China alone over the next few years, not too mention the pressure that will come from global warming i believe that the current spot price of $93/lb will seem like a spec of sand on a beach in the years to come.
Thanks REAL1TY I welcome your comments.
There's much speculation about the potential spot price of U and I guess as more reactors are built, the demand is going to be so great that perhaps some of the figures of hundreds of dollars per pound, may just be correct. It remains to be seen.
With MTN having probably the 3rd biggest resource of U3O8 in Australia, I would've thought that if the new Labour Gov't is going to issue more licences it would have to consider MTN very hard. Do you have any thoughts on this?
There's much speculation about the potential spot price of U and I guess as more reactors are built, the demand is going to be so great that perhaps some of the figures of hundreds of dollars per pound, may just be correct. It remains to be seen.
With MTN having probably the 3rd biggest resource of U3O8 in Australia, I would've thought that if the new Labour Gov't is going to issue more licences it would have to consider MTN very hard. Do you have any thoughts on this?
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LOL, you have managed to pick my only other Uranium holding Marathon.
I got in quite early and have an average PP of .68c so was very happy with the prices earlier this year.
Having said that it doesn't really matter much to me as these are a stock i bought for the very long term, so didn't sell then and won't be selling for many years.
The SA govt is quite receptive to Uranuim, at least in comparison to other states, and imo none of that is going to matter in the years ahead as it is going to get to a stage where no matter how much opposition to Uranium there is the Australlian Govt will have no choice but to embrace Uranium, as will the rest of the world.
I base my thinking not only on the ever diminishing energy fuels but also on global warming.
The world will have no choice but to use Uranium as other sources of energy are killing our world and no other option will be anywhere near ready enough to feed a world with maturing BRIC economies.
I believe that nations with Uranium at their disposal will be forced to issue licenses to mine no matter what their opposition to it is as there will be no other alternative.
Marathon seems to be a reasonably well run company with a resource that will only continue to grow.
If you were interested in entering the Uranium sector and had some patience to sit on your shares for a couple of years you could do very well with them imo.
MTN has no need of a license yet but by the time it is ready for one i would think there would be a very receptive response to their request.
The Ur share boom and subsequent fall from grace was fuelled largely by grossly unrealistic expectations of investors coupled with a complete lack of knowledge in the sector. And of cource, the rapid rise in the spot rise played a large role in this. This harsh lesson was a steep learning curve for investors, who imo will probably be far more prudent in which companies they invest in in the future.
At present, there are probably well over 100 companies on the ASX claiming to have direct exposure to Ur, and just how many do you think will ever actually go into production? Well the answer is not many. The sector has also been severely hampered by a lack of expertise as a whole, afterall, after languishing at $US 7 lb for U3O8, how many comapnies would have had expereience in developing these kind of projects? This has probably also been refelcted in the inability of some comapnies in Australia to take advantage of the price surge, coupled with over regulation in the industry and heritage rights issues. I find it quite amusing that every second Ur listed company has so-called "experts in their field" on board, so just where the hell did these guys come from then?!
Don't get me wrong, I think over the long term, Ur shares will deliver a substansial return, but the choice of which company to invest in will be key. I would be looking for quality of management, obviously grade, depth level of emplacemt of the deposit, and ACCESS to KEY INFRASTRUCTURE. Of course 99% of people would prefer solar energy to Ur, but I believe to expect India or China to adopt these measures is unrealistic. They are still playing catchup to the developed world, and while their economies are in a state of rapid expansion, I don't think their environmental legislation could be expected to develop at the same tempo.
While that's my
anyway
At present, there are probably well over 100 companies on the ASX claiming to have direct exposure to Ur, and just how many do you think will ever actually go into production? Well the answer is not many. The sector has also been severely hampered by a lack of expertise as a whole, afterall, after languishing at $US 7 lb for U3O8, how many comapnies would have had expereience in developing these kind of projects? This has probably also been refelcted in the inability of some comapnies in Australia to take advantage of the price surge, coupled with over regulation in the industry and heritage rights issues. I find it quite amusing that every second Ur listed company has so-called "experts in their field" on board, so just where the hell did these guys come from then?!
Don't get me wrong, I think over the long term, Ur shares will deliver a substansial return, but the choice of which company to invest in will be key. I would be looking for quality of management, obviously grade, depth level of emplacemt of the deposit, and ACCESS to KEY INFRASTRUCTURE. Of course 99% of people would prefer solar energy to Ur, but I believe to expect India or China to adopt these measures is unrealistic. They are still playing catchup to the developed world, and while their economies are in a state of rapid expansion, I don't think their environmental legislation could be expected to develop at the same tempo.
While that's my
anyway
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The main problem for most of the Uranium shares that have taken big hits is basic, "They Ain't got any Uranium", and if they had the financing and 5-years to bring it into production, adds further difficulties. Most have only one option and that's joint ventures, unfortunately, those that have been agreed recently do not cover ALL the previous costs and airborne surveys.
Spot on...
This was always bound to happen... i.e. the separating of the quality stocks from the rest of the hanger oner'ers... and boy, were there a few of them.
Compare Bannerman to the rest... It has real Uranium... and is capable of being dug out using simple cost effective processes, and has the capacity to begin production in the next 3-5 years...
Its share price, while copping a hammering a few months ago, is back, close to all time highs...
This was always bound to happen... i.e. the separating of the quality stocks from the rest of the hanger oner'ers... and boy, were there a few of them.
Compare Bannerman to the rest... It has real Uranium... and is capable of being dug out using simple cost effective processes, and has the capacity to begin production in the next 3-5 years...
Its share price, while copping a hammering a few months ago, is back, close to all time highs...
Yes, the Bannerman chart looks very impressive, one that the chartists will be oodling over I'm sure. At 2.40 currently, 6 months ago I would have said MTN would be a fantatstic buy but now I'm not so sure. Although Mt Ghee still looks like one of the best deposits in Australia by far, the underground scenario sounds like it would be expensive to develop. It still looks like there may be some risk with the development as a whole too.
I would also consider CTS (high grade Corachapi deposit in Peru) and MRO/UKL as serious contenders to go into production over the next 3-5 years, and of course there would be others that I don't follow right now.
So considering the companies out there with exploration licences wouldn't you think that MTN ought to be the next company to be granted a licence to mine? After all, it's got JORC, it's got a solid administration and there's probably no reason why it can't start mining in a couple of years, providing it can get approval. Sure it may have to be an underground mine because of the sensitivity of the area but MTN's administration knows that. I would've thought that being the 3rd or 4th biggest uranium resource in Australia, it's to Marathon's, the South Australian Government's and the Australian Governments benefit and interest to approve it a mining licence.
Anyone agree or disagree?
I'm very interested as I have a significant number of shares.
Anyone agree or disagree?
I'm very interested as I have a significant number of shares.
The problem with the uranium sector was it went through something similar to the tech boom. Everyone threw the name uranium in their company name and suddenly the stock was up multiples. Like the tech boom only the quality stocks will remain, such as era and pdn.
The one to watch though at the moment as people mentioned above is bannermans. Chart is looking very bullish at the moment and there upgraded resource will be announced jan.
The one to watch though at the moment as people mentioned above is bannermans. Chart is looking very bullish at the moment and there upgraded resource will be announced jan.
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