Cameco Corp News Stops Uranium Price declines
Just when the uranium markets begin to dull – as it did in the years 1980 and 1990 —
Then came bad news, the seeds of renewed interest. In October 2006, it was Cigar Lake. In March 2007, flooding at the Ranger operations attracted more investors.
So when Cameco Corp. is bad news, this news is generally good for the price of uranium on the spot.
After Friday edition of Nuclear Market Review (NMR), "The spot price held steady this week, in largepartly due to the uncertainty created by the announcement by late Friday that the Cameco Port Hope (Ontario) plant for the conversion will be closed for at least two months later. "The weekly trade industry has given way indicator TradeTech Uranium price unchanged at U.S. $ 129 / lbs.
News listing of the plant, the closure of two months should be required to upward pressure on the spot price, "according to NMR editor Treva Klingbiel. He estimated a loss" minimum of 2,000 tU ofProduction of UF6, "during the arrest.
Although Cameco reported the company has sufficient stocks of its delivery obligations by the end of the year to cover Klingbiel said: "The psychological impact on the market this event can not be ruled out, as the historical experience with disorder previous switch. "
Soil in the outer walls of the plant was allegedly contaminated with uranium and production-related chemicals. Cameco Conversion Facility is locatedabout 60 miles east of Toronto in the vicinity of Port Hope (Ontario) harbor. Cameco Fuel Services, which at 1 Eldorado Place, is about a quarter of a mile from the shore of Lake Ontario.
During the last three weeks, the spot uranium price dropped because of weak demand and ample supplies locally. Klingbiel explained, "the prices rapidly increasing budgetary constraints, some utilities have to participate in the spot market outcome prohibited.
Greater security of supply comes on the market, but not inoverwhelming amount of fear that, for example, five million pounds from the government of the United States.
Nearly 200 tons of UF6 was offered earlier this week by the U.S. Department of Energy for the supply of 21 September. This sale is just over 10 percent of the considerable amount bandied about in the media a few months ago.
And some buyers are still active. According to NMR, "a non-US program is expected to save the market just before the entrance to about 200 thousand poundsU3O8. "
While the uranium market was quiet, is far from dead. A week ago, Klingbiel wrote that were the key elements of long-term uranium market place very much alive.
It is not surprising that the actual time it will take many of the recent projects of uranium in uranium mines in reality.
The follies of Future Uranium Supply Forecasting
Thursday, 'he told a local newspaper, Northumberland, rumors of something bigmay be held Cameco Corp's Port Hope conversion plant, and could also impact local residents. Communications Cameco spokesman Doug Prendergast told the reporter, 18 July: "There is nothing more important than it is right."
The history of the headlines: Cameco picks Rumors.
Prendergast also said: "If it's something to announce, we get immediately. If they know (employees) who do not." Maybe they are, because …
Friday afternoon, Cameco announced itsthird piece of bad news for the week, the closure of the Port Hope facility for at least two months. Earlier this week, Cameco had a further delay in the Company Cigar Lake uranium project, known and lowered estimates for the production of gold on another property. As is the case with Cameco in the recent past, at a later date, there should be greeted with "further developments".
Even if uranium is found in many regions of the world, rich and cost recoveryUranium is not so easy to guess how many "armchair quarterback".
During the past week, we have our comments on proposed uranium issue, present and future in the world of uranium mining. First, we discussed a number of potentially contaminated, "the importance of uranium mining in the main producing regions in our Uranium Outlook 2007-2008.
Our intention was to support the formation of many analysts and investors who have taken too seriously the many forward-looking press releases and overlyoptimistic, PowerPoint presentations from uranium mining company executives.
Take for example Citigroup Alan Heap. Our Australian colleagues FNArena.com often a laugh at the expense of Mr. Heap is reporting on its analysis, apparently not correct the uranium market. For pity, we sent Mr. Heap a complimentary copy of investments in the Great Uranium Bull Market. We hoped it would be a more detailed analysis, the product that his company is accused of him, a very detailed reportafter.
Although Mr. Heap recently capitulated and upgraded its forecast for uranium prices – this time to U.S. $ 100/pound for the next three years – its mutation is absent in early July "to comment Uranium Utopia" is the His long-term analysis.
We hope that the miners of uranium skip the next part to avoid uncontrollable giggle too.
Mr. Heap said: "barriers to entry for the production of mines are relatively low. Exploration and mine development are not particularly complex." As a result of thisdeep thoughts, Mr. Heap forecast a long-term uranium price of U.S. $ 25/pound, shortly after 2010.
In an article last week we warned: "Too much water, too little water, politics, Greenies, economics, indigenous tribes, desalination plants, NGOs, the tracks of camels, regulators and rebels are just some Mine, analysts face when we hope the long-term uranium price peaks expected. "We also noted," The safest bet is seemingly against future uranium production. "
We wrote thisbecause the uranium mines in the process of development can be particularly complex in the current regulatory environment. After examining hundreds of presentations, filings, preliminary studies and the most advanced and other documents, is a tribute to the persistence of uranium miners that any uranium mining actually takes place.
The world's biggest mines, where there are anticipated problems this year and next, we are the Rio Tinto Rossing in Namibia. In a press release last week gave the company announced Rossing'sProduction of about 400 tonnes in the second quarter – up 29 percent over the same period a year ago.
In 2006, Rossing ranked third, behind Cameco's McArthur River and Ranger was in terms of production of uranium mines. This quarterly production shortfall represents about 13 percent of the Rossing mine's production last year and about one percent of all uranium mined in the world for the year.
Progress is moving forward projects of uranium, butnot happen quickly, as many analysts believe. Mr. Heap highlight in the summary of his report, "My offer is not immediately answered." Jokingly, Mr. No Heap.
The alert is the last week, we showed some of the reasons for my offer has not yet come online soon, once believed. There are problems ahead, which came on our radar and we are following these. Please stay tuned.
Copyright © 2007 by StockInterview.com
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