The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Uranium Price Highly Susceptible to Fund Activity
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JOHN WILSON, Resource Capital Research
"The junior end of the market has been disproportionately hit by the subprime credit/liquidity crises, exacerbated in the uranium sector by a pull back from the earlier than anticipated peak in the uranium price (June ’07). Selective share price outperformance has been driven by company specific newsflow and market position. Uranium price outlook The spot uranium price is US$74/lb, down 20% from US$93/lb 3 months ago (and US$1/lb off its low of US$73/lb, Feb. ‘08) and 46% off the high of US$138/lb reached June ‘07. Forward indicators (fund implied price) currently indicate a modest upward correction to the uranium price to around US$80 to US$85/lb, though in the past 3 months the fund implied price has ranged from US$70/lb to US$95/lb and uranium price volatility has increased. Indicators currently suggest the uranium price market expectation is US$105/lb by September 2008, and this has been relatively stable over the past few months at US$100/lb to US$108/lb. The September 2008 indicator reached a high in 2Q07 of around US$210/lb and a low in 3Q07 of around US$70/lb. The industry average long term uranium price has remained firm at US$95/lb since May ‘07. These expected price levels are revised down from the RCR December uranium quarterly when indicators suggested a near term uranium price of US$90/lb and US$125/lb (-16%) Sept. ‘08. Uranium fund sentiment and activity remain important factors in the outlook for the spot uranium price. The funds are thought to hold about 20mlbs U3O8, which represents a significant percentage of the annual spot market volume, of about 18mlbs to 28mlbs. This leaves the spot market price highly susceptible to further fund activity – and positively impacted late February by Uranium Participation Corp announcing a C$65m capital raising to fund further uranium purchases. " (3/08) |
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More Experts
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