.comment-link {margin-left:.6em;}

Tuesday, August 29, 2006

Uranium jumps another notch

Last week, the spot price of uranium increased by 75 cents to $48.00. This week, it's up another 50 cents to $48.50. While the spot market doesn't have many transactions and is far from being liquid (usually less than 100 transactions per year, but 107 during 2005), the spot price is a reasonable indicator of where the larger volume contract prices are roughly going. Long term spot price chart.

More news items here and here. SXR is starting up their Honymoon project. I looked at SXR here and I've since changed my mind about them, but would need to do more work to determine whether to actually invest in it.
The [Honeymoon] ISL project was expected to produce 880 000 lbs of U3O8 over a six-to-seven year period, compared to 3,8-million lb from Dominion. The life-of-mine average cash operating costs at the “shallow” Honeymoon venture was expected to be $14,13/lb U3O8, which translated into a net present value of $37,7-million, at an 8% discount rate.
I believe those are Australian dollars (=76 US cents), as well since they mention uranium breaching $50.
The feasibility study confirmed an indicated mineral resource of 1,2-million tons of ore, grading 0,24% U3O8.
Here's an interesting article.
It’s time for uranium companies to stop talking about the pounds they have in the ground, and to start actual production, says Geiger Counter comanager Andrew Ferguson.
Well, that's the whole point, no? I know Strathmore (combined links) is working toward that goal.
After remaining stagnant for 30 years, there remains few skilled people to manage the renaissance uranium-mining is experiencing currently.

It seems to me that this slow, steady rise in uranium prices is happening quietly and away from the big spotlights. Within the industry, it's obviously a very big deal, but right now we're not at the stage where in-laws are calling you up with tips on buying uranium companies. When you reach that point, it's probably the time to sell.

Also, regarding Warren Buffett's marriage, on Motley Fool I wrote:

Personally, I think they should wait a while, build up some cash reserves, and spend some time together before they have children.
Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?