Australian (ASX) Stock Market Forum

Uranium, a Raging Bull

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rederob said:
The numbers certainly stack up for the uranium companies with a known resource.
I don't share your faith in how quickly the State/federal governments will move on approving Oz miners to go ahead with a new mine, so I'm staying with PDN's money in the bank approach.
I agree that PDN will probably have a bank account that will enable it to gobble up the juniors, and probably pick and choose which projects to launch into production, thereby giving it some capacity to "time the market" in years ahead.
It will be interesting to see how the juniors' share prices run in months ahead as unless the uranium price keeps stacking on the dollars there is likely to be a desertion of the ranks: Probably good time to do the homework on "value for money" prospects so that a later buy in can be contemplated.
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The coal industry, apart from being dinosaur, Won't be affected by uranium mining... Uranium from Australia is catering for power plants of the future which is something not even the coal industry in it's wildest dreams can be apart of unless it woke up and joined in on the band wagon investing in uranium...

Coal will be left behind anyway
 
Low grade uranium properties should benefit from the skyrocketing spot uranium prices. Companies with lower grade assets are: DYL, TOE, WME, BMN, ERN, CMR and PNN should be very economic to mine.

Now 200ppm worth US$50/t. Equal to 2g/t gold.
 
Well, my predication does not come true for the low graders. The market still like companies in SA with advanced project. Diversifying strategy might work things out.

Nevertheless, it is one of the greatest day in uranium history. A lot of stocks has advanced a lot both in percentage and in absolute value. It might take a bit of time for market to settle down after the madness.

I hope it will repeat in the near future. At this moment, let's just enjoy our paper gain, or real gain. And being humble. No need to brag, brag always brings bad luck.
 
mmmmining said:
Well, my predication does not come true for the low graders. The market still like companies in SA with advanced project. Diversifying strategy might work things out.

Nevertheless, it is one of the greatest day in uranium history. A lot of stocks has advanced a lot both in percentage and in absolute value. It might take a bit of time for market to settle down after the madness.

I hope it will repeat in the near future. At this moment, let's just enjoy our paper gain, or real gain. And being humble. No need to brag, brag always brings bad luck.
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Or NT.
Did you see EME today?

Whos bragging?
Gotta be humble before the markets.
 
Luck play very important rule in finding uranium. Technical strength, top management are not enough.

For example, TOE, UEQ ENR, UXA, and MRO have either strong technical team, or management, or both, but has found nothing serious. Can Lady Luck will visit them soon? Who knows.
 
mmmmining said:
Luck play very important rule in finding uranium. Technical strength, top management are not enough.

For example, TOE, UEQ ENR, UXA, and MRO have either strong technical team, or management, or both, but has found nothing serious. Can Lady Luck will visit them soon? Who knows.
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Same with SAU last year.
Best land, good management, but couldnt find anthing.
Sometimes these things take times.
How many companies over how many years were searching near Olympic Dam and found nothing until Prominent Hill ?
 
The battle of Mt Isa is joint begin.

Prelude: PDN lunch take over Valhalla;
Interlude: GSE found uranium, false start;
Chapter 1: DYL farm in MRX, pay MRX handsomely
interlude: URL found uranium, and DGR acquire large land
Chapter 2: PDN lunch take over SMM, attract French Avera, Threesome battle in progress..
Chapter 3: (unfinished) Take over URL and MRX, DGR or GSE.... with a peanut.
 
http://www.moneyandmarkets.com/press.asp?rls_id=753&cat_id=6

A Uranium Feeding Frenzy! (by Sean Brodrick)
4/18/2007 8:00:00 AM



You think the fact that uranium prices have more than doubled in the past 12 months is something? Just wait! I hope you have your safety belt on, because this could be the ride of your life. Here's why …

There's a feeding frenzy going on in Australian uranium stocks right now. For example, two of the best uranium companies in the world, Areva and Paladin Resources, fiercely bid against each other for another company (and its resources).

Larger miners are generally very conservative. So the fact that these two companies are throwing so much money around, tells me that uranium — which recently hit $113 per pound — has a long, LO-O-O-NG way to go.

Plus, the latest news on a second flooded uranium mine came out — it looks very bullish for prices. And if that's not enough, another brand new development on Monday could shift uranium prices into overdrive! I'm talking about the fact that uranium futures will soon be available right here in the U.S.

More on these two developments in a moment. First, let me tell you a little more about the feeding frenzy …

A Uranium Soap Opera
From Down Under

Australian miners are waiting with baited breath for the Australian Labor Party to hold its Congress at the end of this month. The group is expected to drop its opposition to new uranium mines, which would signal the start of a new uranium boom in Australia.

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However, the bigger companies aren't just sitting on their hands … they're busy snapping up smaller fish. Right now, Summit Resources is one of those fish. It's sitting on at least 37.9 million pounds of uranium … probably double that. And it expects to be producing uranium yellowcake (and vanadium cake) at its Mount Isa location by mid-2010.

Paladin, one of the bidders, already bought out Valhalla Uranium, Summit's partner at Mt. Isa. Summit promptly sued Paladin. So Paladin just turned around and offered A$1 billion (about US$832.6 million) for Summit!


Summit's response: "No way!" And then along came a white knight in the form of French nuclear power giant Areva. It signed a deal to control up to 18% of Summit for $292 million.

Why was Areva interested in jumping into this knife fight? Areva needs good, near-term producing mines. After all, its Canadian subsidiary has a 37% stake in the Cigar Lake Mine that I've been telling you about — where a disastrous flood pushed back its uranium production by at least two years.

With Areva galloping in to the rescue, Paladin changed horses. It sweetened the deal, raising its bid 22% to A$1.2 billion. Surprising just about everyone, Summit's board agreed to the deal.

Now, I still think they're selling themselves cheap. Mind you, I recommended Summit to my Red-Hot Asian Tigers portfolio two months ago and they didn't do too badly. Yesterday, I told them to exit with between 41% and 61.7% gains … on one stock … in just two months … without futures or options.

I'm not trying to toot my own horn … I'm just trying to show the explosive potential of these uranium stocks!

And this Summit deal is just the latest in a string of mergers in the uranium industry: IUC merged with Denison … Denison then bid for OmegaCorp … Sxr Uranium One gobbled up larger rival UrAsia Energy … the list goes on. By my count, there were about 16 mergers and acquisitions in the uranium field in just the last year!

Again, these smart operators wouldn't be paying top dollar for uranium resources unless they thought uranium prices were headed much higher. And you know what? I think they're right!

Latest News from Ranger
Mine Signals Higher Prices

Previously, I told you how the Ranger Mine in Australia, which produces a tenth of the world's uranium supply, was flooded by a cyclone, making it the second water-related uranium mining disaster in about five months. [Editor's note: See "Uranium tops $90 a pound!"]

Ranger is owned by Energy Resources of Australia, and the company already warned that production would suffer. On Monday, we got the details — ERA said first-quarter output of the fuel fell 28% to 1,006 metric tonnes from a year ago.

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What's more, the company says that output will fall next year as high water levels restrict access into 2008!

So the uranium supply/demand squeeze — already tight — is going to get much tighter. In fact, some analysts say mine supply won't meet global demand until at least 2017.

You read that right — that's a 10-year bull market!

Now, let's talk about the new development that could be like rocket fuel for uranium prices …

Get Ready for U.S.
Uranium Futures!

The New York Mercantile Exchange (NYMEX) said on Monday that it signed an agreement to introduce uranium futures on its electronic platforms next month.


NYMEX Chairman Richard Schaeffer told reporters, "We expect to create a benchmark contract for this important and underserved global market."

I think this is where speculators are going to get involved in uranium with both hands. Uranium futures could put us at $500 per pound in the blink of an eye! Because they'll give hedge funds a way to trade in and out of uranium easily.

Traders and speculators might not trust uranium futures at first. They'll be as illiquid as granite. But once things get going, man oh man, we could see some altitude very quickly.

Further down the road, I'd expect to see a uranium ETF in the U.S. Keep your eyes peeled for that one. It would be yet another force to power uranium prices higher.

Get Your Own Piece of
Uranium's Bull Market

If you want a pure way to play rising uranium prices, check out the Uranium Participation Corp., a Canadian fund that tracks uranium. The symbol on the Toronto Stock Exchange is U. In the U.S., the symbol is URPTF on the Pink Sheets. (On Yahoo, that would be URPTF.PK.)

Uranium Participation Corp. trades at about an 18% premium to its net asset value. I look at that as a vote of confidence that the price of uranium will go at least 18% higher. And as I told you today, a lot of smart people have every reason to believe prices will rise sharply and quickly.

Yours for trading profits,

Sean
 
That article almost sounds too good to be true for uranium holders

it will be interesting to see if hes right
 
China to set up uranium reserve
18/04/2007 14:18

Beijing - China will build a strategic uranium reserve in the coming years as it pushes a plan for a massive expansion of its nuclear power industry by 2020, state press said Wednesday.
The system for uranium will become China's third strategic reserve after its strategic grain and oil reserves, the China News Service reported.

Over the next 10 years, China will construct up to three nuclear power plants each year, resulting in increased demand for nuclear fuels of between four and six times current consumption, the report said.

The nation's powerful Commission of Science Technology and Industry for National Defense advocated the strategic uranium reserve in its 11th five-year plan for nuclear energy development that spans from 2006 to 2010, it said.

According to the plan, China will focus domestic uranium exploration in the Yili Basin in northwestern China's Xinjiang region and in the Ordos Basin in Inner Mongolia.

China will also seek uranium resources overseas, it said.

In February, China National Nuclear Corp said it signed a strategic cooperation agreement with Sinosteel Corp to jointly invest in and explore overseas for uranium resources. Sinosteel is reportedly in talks to invest in uranium assets in Australia.

In January, Australia and China ratified a nuclear agreement clearing the way for the export of up to $187m worth of Australian uranium to China annually.

At the end of 2006, only 1.9% of China's total energy needs were produced by nuclear power but this is set to increase to 4% by 2020.
 
YOUNG_TRADER said:
China to set up uranium reserve
18/04/2007 14:18

Beijing - China will build a strategic uranium reserve in the coming years as it pushes a plan for a massive expansion of its nuclear power industry by 2020, state press said Wednesday.
The system for uranium will become China's third strategic reserve after its strategic grain and oil reserves, the China News Service reported.

Over the next 10 years, China will construct up to three nuclear power plants each year, resulting in increased demand for nuclear fuels of between four and six times current consumption, the report said.

The nation's powerful Commission of Science Technology and Industry for National Defense advocated the strategic uranium reserve in its 11th five-year plan for nuclear energy development that spans from 2006 to 2010, it said.

According to the plan, China will focus domestic uranium exploration in the Yili Basin in northwestern China's Xinjiang region and in the Ordos Basin in Inner Mongolia.

China will also seek uranium resources overseas, it said.

In February, China National Nuclear Corp said it signed a strategic cooperation agreement with Sinosteel Corp to jointly invest in and explore overseas for uranium resources. Sinosteel is reportedly in talks to invest in uranium assets in Australia.

In January, Australia and China ratified a nuclear agreement clearing the way for the export of up to $187m worth of Australian uranium to China annually.

At the end of 2006, only 1.9% of China's total energy needs were produced by nuclear power but this is set to increase to 4% by 2020.
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it is a very old news. I saw it in Chinese newspaper around half year ago.
 
As we all know, electricity is part of modern day living.All those who still use a kero fridge and lanterns or candles please put up your hand.As man gets smarter :headshake the use of U is taking the place of coal and gas.LARGE countries with LARGE power demand is going there more.

It is unfolding more so than ever right before our very eyes and no one is going to stop it.The initial rush will taper off in my opinion to become accepted in the system of things.

Take note that right NOW we are witnessing the biggest change to life as we know it.

One day (maybe not in my life time) we will say, remember that stuff we used to burn to make electricity.

Just a look up ahead folks.
 
Wysiwyg said:
As we all know, electricity is part of modern day living.All those who still use a kero fridge and lanterns or candles please put up your hand.As man gets smarter :headshake the use of U is taking the place of coal and gas.LARGE countries with LARGE power demand is going there more.

It is unfolding more so than ever right before our very eyes and no one is going to stop it.The initial rush will taper off in my opinion to become accepted in the system of things.

Take note that right NOW we are witnessing the biggest change to life as we know it.

One day (maybe not in my life time) we will say, remember that stuff we used to burn to make electricity.

Just a look up ahead folks.
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De ja vu
I heard similar saying during tech boom too.
I hope you are right this time.( I Wish)
 
The tech boom is a completely different beast... It was a beast that was based on a simple phrase ".com"... any company that had .com in the name even without an internet connection would jump up in value like crazy... then there were other companies that were tech related, valued at millions of dollars due to hype but was really worth the value of the garage plus the computer that was in it... maybe $5,000 worth of assets...

It was a simple lesson... DYOR and understand what you are buying... In the forum it is pretty clear that we know what we are buying so I don't see a crash like a DOT COM boom happening
 
insider said:
The tech boom is a completely different beast... It was a beast that was based on a simple phrase ".com"... any company that had .com in the name even without an internet connection would jump up in value like crazy... then there were other companies that were tech related, valued at millions of dollars due to hype but was really worth the value of the garage plus the computer that was in it... maybe $5,000 worth of assets...

It was a simple lesson... DYOR and understand what you are buying... In the forum it is pretty clear that we know what we are buying so I don't see a crash like a DOT COM boom happening
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Let us hope it will not go down like the tech boom/bust path. I want to make some money too ;)
 
insider said:
The tech boom is a completely different beast... It was a beast that was based on a simple phrase ".com"... any company that had .com in the name even without an internet connection would jump up in value like crazy... then there were other companies that were tech related, valued at millions of dollars due to hype but was really worth the value of the garage plus the computer that was in it... maybe $5,000 worth of assets...g
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Yeh?
This sounds very similar.
When Great Western Exploration (GWE) changed their name to URA (Uran Limited) the price went up by 3 or 4 fold in one day. Remember that?
Seems like similar beast dont you think??
 

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