Uranium, a Raging Bull

[YOUNG_TRADER]

How the hell am I supposed to study when I'm getting Price Alerts for URA (60c ) and EVE(12.5c Finally!)

Euphoranium is starting!

 

[Fab]

What so interesting about EVE ??? Looks to me very speculative

 

[hypnotic]

How the hell am I supposed to study when I'm getting Price Alerts for URA (60c ) and EVE(12.5c Finally!)

Euphoranium is starting!

I think the stock market is telling you quit studying your silly laws and make some real cash in the stock exchange. :

Seems like a great day for uranium.

 

[Sean K]

What so interesting about EVE ??? Looks to me very speculative

Speculative in that they have not drilled the entire tennament yet and have only provided one JORC resource for a section. There's a lot of work to go before this is a economic mine. Years I'd say. But that's the case with many of these players.

It's key investment as far as I'm concerned is African Energy. They announced last week they were about to start a new drilling program that would start 'in the next few weeks'. There's nothing on the immediate horizon to drive the stock except the general market euphoria, or maybe a takeover offer....unlikely at this stage. Day traders grabbing it this afternoon I reckon. Now the spotlight is on it, I wouldn't be surprised if it has another run before profit takers clip it.

 

[Fab]

Yep I have to agree with you there Kennas

 

[YOUNG_TRADER]

There's nothing on the immediate horizon to drive the stock except the general market euphoria

Nothing excpet the fact that throughout November they are doing a book build type IPO with UK Financial Insto's for the AIM listing of their Subsid African Energy, so I reckon may see more action throughout November as UK Fundies take a look,

The same Insto's who backed OMC and EXT, so are well versed with African Uranium opportunities (or lack there of)

Also EVE has compiled a JORC from SCRATCH in a few months, so I reckon by this time next year there will be at least 4 JORC Deposits

In the end PDN or OMC will take out African Energy

 

[Sean K]

Nothing excpet the fact that throughout November they are doing a book build type IPO with UK Financial Insto's for the AIM listing of their Subsid African Energy, so I reckon may see more action throughout November as UK Fundies take a look,

The same Insto's who backed OMC and EXT, so are well versed with African Uranium opportunities (or lack there of)

Also EVE has compiled a JORC from SCRATCH in a few months, so I reckon by this time next year there will be at least 4 JORC Deposits

In the end PDN or OMC will take out African Energy

Yeah agree that the AIM listing will definately attract attention. Perhaps that is it for the moment and into the comming weeks. If African Energy is going to list at $0.20 then EVE should be at least that, with their other investments adding extra value.

Hopefully the buyers will be lining up today, but there's a bit of paper profit out there atm. Hopefully it's another good day all round!

 

[nizar]

What so interesting about EVE ??? Looks to me very speculative

Maybe it looks to u very speculative because u DONT UNDERSTAND

Do u know what the word speculative means??

Let me explain with an example.
If u have company A which has only LAND, in a country with (at least some degree) of political risk, and has done some drilling returning UNECONOMIC grades of 70ppm and ur market cap is $100m.... sure that has SPECULATION PRICED IN... and is VERY SPECULATIVE

But company B which has already a RESOURCE, at ECONOMIC grades, in a country supportive of uranium mining, and the URANIUM IS ALREADY THERE at 400ppm, and the market cap is $15million... This is NOT SPECULATION. SPECULATION MEANS the company is trading at its VALUE + a speculative element ie. it is trading ABOVE its value. SPECULATION means if there is "potential" (with a risk element) priced in.

Company A = Toro
Company B = EVE

There is no speculation at the current price buddy, do your research, are there any other explorers with a resource capped at this price?? if there are, PLEASE TELL ME.

ANd only a VERY SMALL proportion of their land has been drilled so the potential is massive to INCREASE their RESOURCE. Has this potential been priced in?? NO.

Understand??!@!

I think with its current resource EVE is worth at least $40-50million if u compare to its peers. You will see when it lists on AIM, i suspect the poms will value this company more appropriately...

 

[nizar]

The same Insto's who backed OMC and EXT,

Exactly.
FAB do u know what happened when overseas buyers bought into OMC and EXT??

I DO.

 

[Sean K]

This is going to keep the focus on uranium and keep driving U stocks even higher IMHO

CANBERRA (Dow Jones)--Australian Prime Minister John Howard's support for nuclear power may be endorsed by a report on the economic viability of a domestic nuclear power industry due for release Nov. 21.

Former Telstra Corp. chief executive Ziggy Switkowski, chairman of the Prime Minister's uranium mining, processing and nuclear energy review, will release the report and address the National Press Club in Canberra on the findings.

With dire warnings on the economic impact on global warming in the headlines, Howard has been increasingly voicing his support for nuclear power.

Howard said Thursday nuclear power would eventually become competitive with "dirty coal" because carbon pricing would make coal-fired power more expensive.

The Australian government has made a series of funding announcements in recent weeks for the development of clean coal technology, carbon sequestration projects and the world's biggest solar power plant.

Howard has also warned responding to climate change will have an impact on Australia's economy and increase costs to consumers.

With Australia holding around 30% of the world's known uranium reserves, the government is looking at the viability of increasing the nation's involvement in the nuclear fuel cycle in areas such as fuel enrichment and reprocessing.

The taskforce was also asked to examine the potential of "next generation" nuclear technologies to meet safety, waste and proliferation concerns.

At present Australia exports all the uranium produced by its three mines, accounting for 22% of global exports.

Rio Tinto PLC (RTP), BHP Billiton Ltd. (BHP) and San Diego-based General Atomics each own one of the mines. Canada's SXR Uranium One Inc. (SXR.T) owns the approved but as yet undeveloped Honeymoon project.

Switkowski, a former nuclear scientist, was asked to report the taskforce's findings by the end of the year.

 

[Sean K]

Hits $60.00.

There's no stopping it. I can't remember a day it going down.

All commods up Friday, should be another good day Monday!

 

[Sean K]

Investors in Australia are going to start realising the nuclear is the real deal, and policies are going to change. Some of the better U companies in Australia are going to benefit from this considerably.

On ninemsn:

Debate to follow govt's nuclear policy
Saturday Nov 4 13:21 AEDT

A public debate on nuclear energy will follow the publication of a taskforce report on the viability of the industry, Resources Minister Ian Macfarlane says.

Mr Macfarlane said he had received a briefing from former Telstra head Ziggy Switkowski, who heads the government's nuclear energy task force examining the viability of a future nuclear power industry.

"What we are seeing in the community is a willingness now to consider nuclear energy," Mr Macfarlane told reporters.

"We are seeing reports like the Switkowski report which will indicate that nuclear energy will be competitive with low emission coal within 15 years."

Mr Macfarlane said the next step after receiving the report, which is expected to be released in the next few weeks, would be to have a public debate in Australia on nuclear energy, using facts not fear.

"We want to see debate that is based in understanding and knowledge not a debate based on scare tactics," he said.

 

[gtr]

Uranium Boom

Very interesting read www.dinesletter.com regards Ren

 

[djones]

In your opinions what is the best Uranium stock to buy for short term gain (sell in approx 3-4 months) at the moment?

 

[Sean K]

In your opinions what is the best Uranium stock to buy for short term gain (sell in approx 3-4 months) at the moment?

PDN

Safest bet atm. All the rest could well be lower, but this is about to start actually mining.

(don't hold)

 

[djones]

PDN

Safest bet atm. All the rest could well be lower, but this is about to start actually mining.

(don't hold)

Thanks. Whats your reason for not holding currently? Also at what price range is it still a good buy in your opinion?

 

[Sean K]

Thanks. Whats your reason for not holding currently? Also at what price range is it still a good buy in your opinion?

I'm waiting for a pull back to $5.25 ish. Might not get there though.

Broker recommendations and price targets:

ABN Amro 31-Oct-06 Buy $6.47
UBS 31-Oct-06 Neutral 2 $5.50
Deutsche Bank 04-Oct-06 Upgrade to Buy from Hold $6.07

This is not a short term 'multi bagger' like some of the others (EVE, URA etc), but is the safest due to its stage of mining. DYOR. Check each company thread and make your own mind up.

 

[2020hindsight]

Kennas
call this a feeling in my bones, but comparing this with what appears to be tha main opposition, I plan to stay with Zinc for a few months yet - Uranium for another day for me -
Appreciate any comments - as long as you don't mention the bible lol.
______________________
Disclaimer I'm not ramping, although I do plead guilty to rambling. I never realised that ramping and rambling just turn the b upside down... AHH SHUDDUP!!. (rambling idiot!!)

PS Is it the case that, when you keep all your eggs in one basket - you end up a basket case.?

 

[nizar]

Kennas
call this a feeling in my bones, but comparing this with what appears to be tha main opposition, I plan to stay with Zinc for a few months yet - Uranium for another day for me -
Appreciate any comments - as long as you don't mention the bible lol.

PDN is a winner, and i think people are underestimating the potential of this stock. I would not be suprised to see PDN at $20 sometime next year and the price of uranium soars and those contracts roll in.

As for URA, how much will it cost to buy those "advanced projects" that can be mined in a matter of "months" as according to Kate Hobbs. I suspect it will be substantial.

But i agree, zinc for the next 6-12months or so, and it still only be the beginning for uranium.

Borshoff reckons uranium will be in shortage for the next 10 years.

 

[nizar]

Article realadin

Paladin boss warns on yellowcake fever
2nd November 2006, 10:00 WST


Paladin Resources founder John Borshoff yesterday warned investors to be wary of the “magic” appeal of uranium as the price for the radioactive metal hit a record high after its biggest weekly gain in two decades.

The Paladin boss also attacked ‘‘absurd’’ statements by some of Australia’s uranium hopefuls and accused their backers of being interested in mining only the stock exchange.

His comments came as US-based Ux Consulting, which publishes the industry benchmark price, revealed in its weekly posting that uranium had soared 7 per cent to a record $US60 since subterranean flooding closed Cameco’s big Cigar Lake project in Canada last week.

The accident has delayed the start-up of the new mine by up to a year. With the project expected to supply up to 10 per cent of the world’s uranium from 2008, the delay has squeezed an already tight market and threatens to send prices for uranium even higher.

The latest rise means uranium, the raw material for nuclear reactors, has doubled in the past year and skyrocketed from $US7.10 a pound in 2000. In the last record rally, in May 1978, it reached $US43.40, or $US111.65 in today’s dollars.

The uranium price run has fuelled a flood of interest in the industry and sparked a welter of new but well-supported listings, most of which are still years away from any prospect of production.

Mr Borshoff, who is preparing Paladin for production from its new Langer Heinrich mine in Namibia, said most of the new players would be lucky to get off the ground.

“A lot of juniors are saying they are going to do this, that and the other, but they haven’t got the expertise,” he told WestBusiness.

“It seems to have a magic appeal with investors, but what is happening is you get people in the uranium industry that have deposits that say absurd things and get away with it.

“Everybody’s been trained in uranium by the Simpsons.”

Paladin will be one of the biggest beneficiaries of the price rise. With only one quarter of its planned production sold into contracts, it has most exposure to the uranium spot price. Most other producers have nearly all of their output locked away in forward agreements.

Research house Bell Potter has increased its earnings forecasts for Paladin by 40 per cent in 2007-08, and by 30 per cent in the following year. The profit upgrade reflects the broker’s tip that the uranium price will gain another 20 per cent in 2006-07 and a further 25 per cent in the next year.

“For Paladin it validates our whole strategy and basically every dollar now is just sheer profit,” Mr Borshoff said.

He tipped uranium to reach $US100 a pound by the end of next year and expected uranium to be in short supply for at least the next 10 years. Paladin shares yesterday closed 3 ¢ stronger at $5.80 but are well up on the $4.89 they were trading at before the Cigar Lake closure.

REBECCA KEENAN with BLOOMBERG