Uranium Investing News

By Luke Brocki - Exclusive to Uranium Investing News and U3O8.biz

The spot uranium market remains quiet this week, with little or no activity and both Ux Consulting and Tradetech having left their weekly spot prices untouched at US$64.50 and their long-term prices stable at US$80 a pound U3O8. 

Upcoming weeks could breathe new life into the market, however, thanks to ongoing water problems at Cameco’s flooded Cigar Lake mine and an upcoming uranium symposium by the World Nuclear Association in London. Analysts feel both of these events could effectively narrow the gap between willing buyers and sellers.

Price publisher Tradetech reports just one spot uranium transaction in the last week. Two new buyers have reportedly entered the term market, but no transactions have yet been finalized.

Producer Uranium One enjoyed a stock boost on Tuesday, climbing 34 cents, or 9.7%, to C$3.86 on the Toronto Stock Exchange. The move comes just a few days after the company’s shares took a hit following South Africa’s announcement it would limit uranium exports to ensure sufficient domestic fuel supply. South Africa is that continent’s largest uranium producer, having mined more than 500 tonnes of the metal last year, and Uranium One is South African’s biggest uranium miner.

South Africa’s minerals and energy minister is expected to approve the new policy within the next few weeks. It’ll be interesting to see what happens to the miner’s shares if and when that happens.

Tuesday saw some other noteworthy activity on the TSX, which came mostly from the juniors: Pele Mountain Resources gained two cents, or 9.1%, to 24 cents, after announcing a new technical team that will develop the company’s recently named Eco Ridge mine project in Northern Ontatio’s historic Elliot Lake uranium camp. Pele’s prefeasibility study at Eco Ridge is scheduled for completion in March 2009.

Benton Resources gained three cents, or 9.1%, to 36 cents, after arranging a three-million-share buyback; El Nino Ventures gained three cents, or 14.2%, to 24 cents; Target Exploration and Mining gained three cents, or 10%, to 33 cents; and Ucore Uranium gained three cents, or 13%, to 26 cents.

In global nuclear news, Australian-owned and Africa-based producer Paladin Energy said it will more than double output this year thanks to higher volumes at the company’s Langer Heinrich mine in Namibia and a new project in Malawi.

Bloomberg reported Paladin production is expected to climb to 3.6 million pounds U3O8 in the year ending June 30, 2009, up from 1.71 million in the previous 12 months. The company is also looking to develop projects in Australia, namely the Mt. Isa and Angela projects. Paladin Energy was nearly flat on the TSX on Tuesday, losing four cents, or less than one per cent, to C$4.90.

Agence France-Presse reported Monday that energy-starved desert kingdom Jordan plans to buy a nuclear reactor from a French company. Little details have been disclosed, aside from the fact that the as-yet-unnamed French firm is to also provide training for the staff required at the plant. Jordan and France signed a nuclear cooperation agreement in May.

Finally, World Nuclear News reported Tuesday beleaguered uranium giant Cameco has taken a stake in a company exploring for uranium in Niger. Currently, France’s Areva is the only company with operating uranium mines in the African nation, but other multinational firms hold government permits to explore for uranium. According to WNN, Niger is among the world’s top five uranium-producing countries. After two days of massive losses on Friday and Monday, Cameco stock was nearly flat Tuesday, gaining 16 cents, or 0.5%, to C$30.62.