I’ve updated my previous post in a vain attempt to keep on top of the Chalk River “crisis.” I am happy to see it has legs and thank all those who have contributed their information to the collective pool. I thought I’d post a bit of a round-up on what else is going on in the nukes world.
Supply and demand: who’s calling the shots?
19 December 2007This year’s World Nuclear Association market report comes at a very interesting time for nuclear power and more particularly for the world uranium market. By Steve Kidd
The new World Nuclear Association (WNA) market report, The Global Nuclear Fuel Market – Supply and Demand 2007-2030, continues the long tradition of biennial reports from WNA and its predecessor organisation, the Uranium Institute, from the time of the latter’s foundation in 1975. As such, the report very much represents the views of industry participants on the likely future of the nuclear fuel market, but without being perceived as a lobbying document on behalf of the industry.
Here’s that lobby document. But you can’t have it unless you come up with £375! (And if anyone has it, would you please share it?)
IRVINE, Calif., Dec 19, 2007 (PrimeNewswire via COMTEX) — URRE | charts | news | PowerRating — “Despite the roller coaster in the 2007 uranium spot price that saw the resource rise from $72 at the beginning of the year to a zenith of $136 and a recent sell-off leading to yesterday’s price of $90, preeminent minds in the space have glittering expectations for uranium prices,” stated SmallCap Sentinel analyst D.R. Clark. “And these optimistic forecasts aren’t coming from random voices, they’re issued by a top CEO and a respected independent research firm.”
The informational report “Uranium for the SmallCap Investor” has been made available at http://www.SmallCapSentinel.com and will address the rise of interest in uranium related equities such as Uranium Energy Corp. (AMEX:UEC), Denison Mines Corp. (AMEX:DNN), Uranium Resources, Inc. (NASDAQ:URRE) and Uranerz Energy Corp. (AMEX:URZ).
“Earlier this month, Salman Partners’ Senior Mining Analyst Ray Goldie and Research Associate Patrick Donnelly predicted that uranium prices could reach $200/lb in the next three to five years due to a lack of new mine supply, citing Russian uranium concerns,” Clark added. “This comes on the heels of a recent interview in which Uranium One CEO Neal Froneman made a bold declaration that uranium could hit $150 in 2008 and then supported the forecast with a battery of information,” Clark noted.
$200/lb? Maybe, if all the mines get shut down! w00t!
Areva Share Sale Threatens Reactor Builder’s Revival (Update2)
By Anne-Sylvaine Chassany
Dec. 19 (Bloomberg) — Areva SA, the world’s largest builder of nuclear reactors, is heading for a meltdown from a share sale French President Nicolas Sarkozy is considering for early 2008.
Speculation about a buyout or a merger with Alstom SA, the biggest maker of coal-fired power plants, has helped drive a 32 percent rise in nonvoting certificates of the state-owned company this year. So has an increase in the spot price of uranium, which hit $138 a pound in June.
The Areva securities represent less than 5 percent of the company’s capital and are trading at 39 times estimated earnings. Five of nine analysts who cover the company recommend selling before the shares are diluted in an expanded pool of investors. Two analysts say “hold” and two “buy.”
“Areva’s certificate is largely overpriced, disconnected from the company’s fundamental value given its current contracts and midterm prospects,” said Clemence Bounaix, who helps manage 5 billion euros ($7.2 billion) at Richelieu Finance in Paris and has sold most of its Areva certificates. “Investors are playing a very bullish scenario in a long-cycled industry.”
Does no one take note that an investment in the uranium industry is an unethical investment?
December 19, 2007 American Uranium Corporation (OTCBB: AUUM) is pleased to announce the formation of an Advisory Board to the CEO and Board of Directors of the Company and the appointment of its first member Tom Pool.
Since 1995, Mr. Pool has been Chairman of International Nuclear, Inc. in Golden, Colorado. He is respected globally as an analyst for the development of new production facilities, evaluation of strategies, and assessment of production costs. He is proficient with preliminary and detailed feasibility studies for new project development and financing. He is also experienced with valuations of uranium projects, deposits and property brokerage.
What a coup for AUC! They’ve grabbed one of the loudest shills and pro-nuke propagandists in the world to advise them on how to better wreak havoc on Earth and hoodwink the citizens! Double w00t!!