Re: CCJ......Cameco is the largest producer and has the biggest deposits but may not be the best bet going forward. They have a lot of their production sold forward at much lower prices and the Cigar Lake project, while it is the worlds largest deposit, is plagued with serious flooding, and the accompanying delays and expense. Uranium now trades as a commodity, not weekly auction by sealed bid, the process that saw the meteoric rise in the price of U-308. You may want to consider other producing names in the space, such as SXR Uranium(SXR-T), Dennison mines(DML-T), or Paladin(PDN-T).
The Globe and Mail reports in its Wednesday edition the spot price of uranium oxide took a break last week from its rocket rise, standing pat for a change at $120 (U.S.) a pound. The Globe's John Partridge writes, however, the price of a June yellowcake contract is $138 (U.S.) a pound, and the chief executive officer of one uranium producer is betting the price could rise as far as $250 (U.S.) next year. "I believe that many market participants are overly optimistic in their forecasts about the timing of new supply becoming available to meet demand," said Neal Froneman, CEO of SXR Uranium One. "I also believe that many forecasts underestimate the growth in demand for uranium that we expect to see as more and more countries announce the construction of new reactors," Mr. Froneman said in an e-mail. "The market will remain very tight for at least the next five to seven years." Uranium prices have soared more than 70 per cent already this year, having climbed 15-fold since 2001. Peter Farmer, who heads uranium miner Denison Mines, said last month that he does not expect the price to stay above $100 (U.S.) for much longer. He suggested it might average $70 (U.S.) to $80 (U.S.) over the next decade. |
