Australian (ASX) Stock Market Forum

Uranium, a Raging Bull

Jump to new
nizar said:
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.
Click to expand...


Nizar PDN at $20 is a very big call for a company not making any money at the moment. It needs to prove that it can generate enough cash and profit to warrant the exorbantly high price that it's currently at. If it does then the market will be looking for further increases in revenue to push it even higher. If it fails to deliver the price will collapse in a big way.
 
ERN might be worth a look - have just acquired a number of tenements in Namibia, down the road from Rio Tinto's Rossing Mine and Paladin's Langer Heinrich deposit. radiometrics look pretty impressive!

won't know until they begin drilling but it sure looks promising

r_Radiometric%20Comparison.bmp

Erongo Energy Tenements
 
champ2003 said:
By the way has anybody heard of the profit forecast for PDN?
Click to expand...

Good question Champ. Was probably in the BFS based on about $30 uranium price, so would be interesting to extrapolate. I'll look into it myself. Report ron.
 
The potental of EXT will come to fruition in 2007. I suspect it will be one of the best performing U stocks in 07. They have the location, to date the grades are excellent and extra tenaments to be announced very soon.
 
Georgeb said:
The potental of EXT will come to fruition in 2007. I suspect it will be one of the best performing U stocks in 07. They have the location, to date the grades are excellent and extra tenaments to be announced very soon.
Click to expand...

they do indeed have the location, whether geographical proximity means anything is yet to be proven. how many companies were exploring around Olympic Dam since 1975 until now and besides Prominent Hill, nothing substantial has yet been found?

also, another thing, too bad it takes 6 months per 11 holes.

extra tenaments very soon??, i have been waiting for these for several months. Thank God i was waiting from the sidelines.
 
Isn't PDN the only obvious choice for a well run good prospect U productivity and low risK uranium company. I am surprised not to read more comment on PDN in this forum. Maybe in Dec when they start production
 
Fab said:
Isn't PDN the only obvious choice for a well run good prospect U productivity and low risK uranium company. I am surprised not to read more comment on PDN in this forum. Maybe in Dec when they start production
Click to expand...

every1s busy looking 4 the next paladin
 
johnmwu3 said:
Nizar,
May I ask how do you think about CUY ? it proved some U in it's Orban area.

Cheers,

John3
Click to expand...

Im not familiar with the stock. Ill have a look during the week and let u know what i think.

Cheers
 
kennas said:
Good question Champ. Was probably in the BFS based on about $30 uranium price, so would be interesting to extrapolate. I'll look into it myself. Report ron.
Click to expand...


I fund the BFS announcement for PDN on the 5/9/2005
Costs for the first 6 years are estimated at 12.20/lb u308 extracted. In the first year PDN's U308 production will be 2.6 million u308. The profit after costs at the current price of $60 U308 is $47.80 therefore 2.6 million U308 x $47.80 = 124 million 280 thousand profit so there we have it. Now it just needs to be worker out if the current share price is worth it according to that.
 
Looking at PDN now its almost valued at 3 billion dollars. I hate to say it but it appears as if it's way over valued if i'm right with my calculations. ANyone else got any thoughts on this new info?
 
Actually if you count their reserves as well as the 60 odd million U308 then thats pretty close to the value of the 3 billion market capitalization.
 
Weekly Uranium Spot Price Takes a Breather

By James Finch

After a record percentage jump of 7 percent the previous week, TradeTech's Uranium spot indicator stalled at US$60.25/pound. According to the consulting service, which is the first to report changes in the spot price, "small quantities of uranium" were offered at the current price.

TradeTech Chief Executive Gene Clark said, "One off-market transaction involving delivery before year-end was concluded this week at, or very near to, TradeTech's Spot Price Indicator of $60.25 per pound U3O8." The term U3O8 refers to uranium oxide, which is the processed uranium before conversion and enrichment for use in powering nuclear reactors.

The spot uranium price has been moving higher through 2006. It has doubled in the past 14 months. "While most sellers adopted a ‘wait and see' attitude, a few decided to capitalize on the recent price run-up," Clark said. "These decisions were prompted by end of year cash needs." Clark explained why there were offers being made available by sellers, "When it gets close to closing the fiscal year, and some sellers see an opportunity to book a sale accompanied with payment before the year ends, offer prices often reflect that hunger for cash."

Clark expects market fundamentals to supper further price increases. Uranium pricing strengthened after a Cameco Corp's advanced uranium project was flooded on October 23rd. Known as Cigar Lake, the uranium mine was anticipated to calm an excited uranium market by providing as many as 18 million pounds of nuclear fuel to global utilities. Utilities were already anticipating a shortage in uranium because of increased Asian demand and the termination of the Russian HEU deal, which benefited U.S. electric utilities.

"The timing of the Cigar Lake flooding, coincident with the need of some sellers to generate cash at year-end, means buyers have a brief window of opportunity to obtain uranium at prices that will likely be considered a bargain in the not-too-distant future," Clark concluded.
 
Well, recently it’s been a spectacular up ride for many uranium stocks. Well done ;)

On the way up, I sold almost all holdings with more or less good profit.

Now, with burning cash in the bank I am divided in opinions. Each part of my brain tells me something else:
• The bull run was too steep and correction must come very soon.
• There is still potential for upswing due to high demand and lack of supply…

But with the demand/supply it is a bit of problem. According to my info, only BHP & ERA is currently mining & selling uranium. Am I right?

I know it is a silly question but could you state here some companies worth to have a closer look at?

Thank for your reply.
 
Mellow77 said:
Well, recently it’s been a spectacular up ride for many uranium stocks. Well done ;)

On the way up, I sold almost all holdings with more or less good profit.

Now, with burning cash in the bank I am divided in opinions. Each part of my brain tells me something else:
• The bull run was too steep and correction must come very soon.
• There is still potential for upswing due to high demand and lack of supply…

But with the demand/supply it is a bit of problem. According to my info, only BHP & ERA is currently mining & selling uranium. Am I right?

I know it is a silly question but could you state here some companies worth to have a closer look at?

Thank for your reply.
Click to expand...

And Heathgate at Beverley.

A 4th mine, Honeymoon, is going to be up and running soon.

Uranium One, a subsidiary Southern Cross Resources, have been granted environmental approval to mine, with construction to start this year.

The environmental approval was the final step in the process for Uranium One to proceed with mining at the Honeymoon site in SA's far north-east.

Production is likely to start in 2008.

Uranium One already had been granted a mining licence by the SA government but had to wait for the environmental approval before commencing construction.

Next closest to operate will probably be SMM, if Labor change their poicy, but that won't be operating even after that for some time.
 

Similar threads

tech/a
Uranium problems - supply and disposal
Replies
4
Views
5K
laurie
L
Top