Uranium, a Raging Bull

[mmmmining]

If anyone senses any change of the wind, here is a short video featured the famous James Dines last month.

http://www.smartstox.com/index.php?company=a_james_dines&ext=yes

 

[Plan B]

Uranium Price Indicator Climbs to $65/pound
Sellers Expecting Price Bump Next Week

Aggressive bidding for spot uranium may soon be in the cards. Uranium buyers and sellers anticipate a potentially stronger upward move in the spot uranium price after a U.S. producer offers material for sale this coming week.

Subsequently, the official TradeTech U3O8 Weekly Spot Price Indicator rose another dollar to $65/pound for the week ending December 8, 2006. According to the consulting firm’s weekly Nuclear Market Review (NMR), one utility’s recent uranium purchase fell more than 200,000 pounds shy of material the utility hoped to buy.

Sellers have continued the ‘wait and see’ attitude, established after the late October announcement of flooding at Cameco’s Cigar Lake uranium project. According to NMR editor Treva Klingbiel, “A US producer plans to enter the market next week to auction as much as 200 thousand pounds U3O8 for delivery later this month.” She pointed out “bidding is expected to be aggressive.”

NMR also reported, “Sellers have withdrawn from the market or are making market-related offers in anticipation of a price bump following the auction.” Ten buyers remain active in the market hoping to purchase more than five million pounds of U3O8 equivalent. Nineteen utilities are actively seeking nearly 43 million pounds for delivery beginning in 2007.

Similar tight conditions were reported in the uranium conversion and enrichment markets. Buyers appear unable to obtain the entire requests, settling instead for partial delivery. Up to nine U.S. and non-U.S. utilities are said to be evaluating off-market purchases to meet long-term enrichment commitments.

 

[champ2003]

Excuse my ignorance but can anybody please tell me how much revenue PDN should generate on a yearly basis?

I'm a little confused by the conversion rates . Apparently PDN will produce 1180 tpa u308 per year but how do i convert that into a dollar value?

Champ

 

[Freeballinginawetsuit]

Excuse my ignorance but can anybody please tell me how much revenue PDN should generate on a yearly basis?

I'm a little confused by the conversion rates . Apparently PDN will produce 1180 tpa u308 per year but how do i convert that into a dollar value?

Champ

Uranium is currently trading at about 65 bucks a pound,convert that to kilo's,then tonnes and bingo.

 

[champ2003]

Uranium is currently trading at about 65 bucks a pound,convert that to kilo's,then tonnes and bingo.

Ok that sounds fine but it doesn't really help me in this instance as i'm looking for a dollar figure. Can anyone help me out? Based on the info above what yearly revenue is PDN likely to have???????

Champ2003

 

[camaybay]

$168m

 

[MalteseBull]

DYL

 

[deftfear]

Ok that sounds fine but it doesn't really help me in this instance as i'm looking for a dollar figure. Can anyone help me out? Based on the info above what yearly revenue is PDN likely to have???????

Champ2003

Be aware that some of PDN's production has been forward sold at prices much less than the current spot price, however they do get 50% of the spot price above $50 on the uranium that has been forward sold. So at the current spot price of $65, PDN would get the price that the uranium was forward sold at, plus $12.50 (50% of $65 - $50)

Of course dyor.

 

[Mellow77]

Just another positively looking link for the uranium fever. Not so significant atm though.

http://www.kansascity.com/mld/kansascity/news/world/16211081.htm

Cheers

 

[mmmmining]

A bit of wind change today, PDN, ERA, DYL are taking a bit of hit, while the uranium indicated spot price is record high, and he uranium spot price could be much higher during coming uranium purchase season, according to expert.

 

[chris1983]

Uranium stocks are getting hit because of the following. my Beloved BMN was having a great run but have retraced. boohoo

DJ MARKET TALK: US Uranium Sales Plans Hit Paladin, ERA

0454 GMT [Dow Jones] Paladin Resources (PDN.AU) down 42 cents, or 5.8%, at A$6.79 with dealer saying report in Wall Street Journal that US will sell down part of its uranium stockpiles and hence drive prices lower, is affecting stock. Notes that while PDN has run to A$7.45 from A$5 in last 2 months, news causing some caution, despite US Energy Dept first proposing plans in August. Rival producer ERA (ERA.AU) also off in last 2 hours, down 5.5% at A$17.48. (WEL)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com

(END) Dow Jones Newswires
December 11, 2006 23:54 ET (04:54 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.

Tuesday 12 December 2006 15:54:51:290 AEST

 

[barney]

Uranium stocks are getting hit because of the following. my Beloved BMN was having a great run but have retraced. boohoo

DJ MARKET TALK: US Uranium Sales Plans Hit Paladin, ERA

0454 GMT [Dow Jones] Paladin Resources (PDN.AU) down 42 cents, or 5.8%, at A$6.79 with dealer saying report in Wall Street Journal that US will sell down part of its uranium stockpiles and hence drive prices lower, is affecting stock. Notes that while PDN has run to A$7.45 from A$5 in last 2 months, news causing some caution, despite US Energy Dept first proposing plans in August. Rival producer ERA (ERA.AU) also off in last 2 hours, down 5.5% at A$17.48. (WEL)

Contact us in Singapore. 65 64154 140;
MarketTalk@dowjones.com



(END) Dow Jones Newswires
December 11, 2006 23:54 ET (04:54 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.

Tuesday 12 December 2006 15:54:51:290 AEST

Howdy Chris, Just curious, Did you get that report off a news feed/site that is accessible by all "punters". PDN's SP dropped that quick I thought the mine had caved in!! Looks like a typical over reaction if based on the news report alone ..... Possible buying op?? Cheers, Barney.

 

[Freeballinginawetsuit]

You can only have so many screens up and take so much info in at a time, thats what you have risk measures for, to take up the slack.
By the time any of the info comes out, the multiple staffed offices of the brokers have all ready looked after their clients and dumped.
If some bad news hit a stock, mine caving in etc, the share would have tanked before you even got a chance to sell. I didn't even watch PDN 5 minute drop today, was to busy with JMS and before I was onto it my holdings were sold. If I had known about the crappy US thing I probably would have bought back in.

News feed info is good to follow but of no help to the average punter to sell on bad news, too little, to late!. Good for buying though, if youre quick enough

 

[chris1983]

Hey Barney.

I grabbed the post from another poster on another site. Im trying to also find it on the website. It seems to be the reason for the drop though. One guy is saying that the department of energy controls the equivalent of 135 million pounds of natural uranium, about 75% of the world's annual uranium consumption of 180 million pounds. Im on the department of energys website trying to find information.

 

[barney]

You can only have so many screens up and take so much info in at a time, thats what you have risk measures for, to take up the slack.
By the time any of the info comes out, the multiple staffed offices of the brokers have all ready looked after their clients and dumped.
If some bad news hit a stock, mine caving in etc, the share would have tanked before you even got a chance to sell. I didn't even watch PDN 5 minute drop today, was to busy with JMS and before I was onto it my holdings were sold. If I had known about the crappy US thing I probably would have bought back in.

News feed info is good to follow but of no help to the average punter to sell on bad news, too little, to late!. Good for buying though, if youre quick enough

Howdy again F/B, (You are out and about early for a "westy" Hope New Girl didn't wear you out last night You are right , she is feisty)

No doubt you are 100% right re the news feed, Still good to know why the Sp dropped, even if it was too late to do anything about it. JMS did good today, so you are probably still cracking open a "carlton"?? (or 2) Cheers, Barney.

 

[mmmmining]

I don't want to say the "C" world. But people who is sitting on a stockpile of profits are nervous. Any change of wind will have butterfly effect.

I guess for long term investor, it is deja vu, being there, and done that, and opportunity to top up is coming. But for short-term trader, the sign is not good.

 

[barney]

Hey Barney.

I grabbed the post from another poster on another site. Im trying to also find it on the website. It seems to be the reason for the drop though. One guy is saying that the department of energy controls the equivalent of 135 million pounds of natural uranium, about 75% of the world's annual uranium consumption of 180 million pounds. Im on the department of energys website trying to find information.

Cheers Chris, Keep us posted, Barney.

 

[barney]

I don't want to say the "C" world. But people who is sitting on a stockpile of profits are nervous. Any change of wind will have butterfly effect.

I guess for long term investor, it is deja vu, being there, and done that, and opportunity to top up is coming. But for short-term trader, the sign is not good.

Hi Mmmmmmmmmmmm (that might be too many M's) I agree , Lots of people taking "lots of profit" on Uranium, but U is not a "flash in the pan" ........ U is going to be big imo ............. If Zinc can be as big as it is atm, how big can U get??? All the best Barney.

 

[Freeballinginawetsuit]

Hi Mmmmmmmmmmmm (that might be too many M's) I agree , Lots of people taking "lots of profit" on Uranium, but U is not a "flash in the pan" ........ U is going to be big imo ............. If Zinc can be as big as it is atm, how big can U get??? All the best Barney.

U is not imune, just take POO for example!, that was immune for a while . Every dog has its day in the........limelight.

 

[mmmmining]

Hi Mmmmmmmmmmmm (that might be too many M's) I agree , Lots of people taking "lots of profit" on Uranium, but U is not a "flash in the pan" ........ U is going to be big imo ............. If Zinc can be as big as it is atm, how big can U get??? All the best Barney.

Hi, Barney, not many. My station Triple M + Mining, Make sense?

In the past 2-3 years, U stock has experienced 4 major pull backs. But it has reached new all time high afterwards each time. That means even you are buying at current high, the chance of making money is good only if you can hold them for a while, and the uranium stock you own has something hopeful, particularly the resources. As long as the uranium price is keeping up, soon or later the company with a lot of resources will worth more money, and the company can upgrade the resources amount by simply lower the cut-off grade, i.e. from 500ppm to 250ppm of U3O8. Regards.