Chu Outlines Support For Nuclear Energy

From Politico...

Steven Chu said on Tuesday that he would push as the new energy secretary to help the nuclear energy and clean coal industries jump-start their contributions to battle the nation’s energy crisis.

The Nobel Prize-winning physicist told the Senate Energy and Natural Resources Committee during his confirmation hearing that he’d help streamline nuclear loan guarantees that would help the industry construct several new plants to produce low-emission energy and would push the Energy Department to examine options for recycling nuclear waste.

“I’m supportive of the fact that the nuclear industry should have to be part of energy mix in this century,” Chu said. “And recycling [nuclear waste] in the long term can be part of the solution.”

Uranium Consumers Delay Purchases

According to TradeTech uranium-oxide concentrate for immediate delivery fell $2, or 3.7 percent, to $52 a pound last week as utilities delayed purchases until the 2009 calendar year.

“The severe economic environment seems to have created a greater sense of urgency for some year-end sellers than in previous years,” TradeTech said. “The majority of the buyers have no budget left in 2008.”

Uranium prices gained $10 a pound in November after major producers such as Cameco (NYSE CCJ) announced production cuts.

Uranium Spot Prices Continue To Decline

Spot uranium prices are at levels not seen since January 2006. Amid the credit crisis many utilities are holding back on purchases.

TradeTech’s Uranium Spot Price Indicator dropped $4.00 this week to $47.00 per pound U3O8.

Strike Halts Uranium One Operations

JOHANNESBURG (miningweekly.com) – Uranium-miner Uranium One has temporarily suspended mine operations at its troubled Dominion project, near Klerksdorp, in South Africa, after it was unable to reach an agreement with striking workers.

The miner said in a statement to shareholders on Monday that the move follows labour disruptions last week, which had culminated in a general illegal strike.

Most of the labour force at Dominion had refused to return to work, despite a court order, issued by the Labour Court of South Africa on October 9, which prohibited the continuation of the illegal strike.

Subsequently, Uranium One had, on Friday, started issuing termination notices to the striking workers at Dominion.

"In the meantime, the company is actively exploring all options available to it at Dominion," the company said in a statement to shareholders.

On October 8, the National Union of Mineworkers (NUM) had reported that workers were failing to go to work at the project, as they were being threatened by a group of armed men.

The group of armed men were recently dismissed by the mine and had started calling themselves the "crisis committee", said the NUM.

Uranium Leader Cameco Trading Below Net Asset Value

Shares of uranium producer Cameco (NYSE CCJ) are 50% off their highs and are now trading below net asset value.

Desjardins Securities analyst John Redstone:

"Previous valuations accorded by the market used earnings with a high multiple based on the anticipation of a sharp increase in the price of uranium, he said in a note to clients. "Since then, however, the price has dropped considerably to US$53 from a high of US$146. It is highly debatable whether such high multiples will be applied anymore."

Mr. Redstone said he still believes Cameco stock can rise to its net asset value, adjusting his price target from $34.20 to $29.55. Reflecting the current share price, he also upgraded his recommendation from "hold" to "buy."

Uranium Supporters Score Political Victory In WA

The pro-uranium mining stance of Colin Barnett's newly installed Western Australia Government will spark a significant drilling program in the state that is likely to deliver billions of dollars to both state and federal coffers, according to analysts and the industry.

The most advanced uranium projects in Western Australia include BHP Billiton's Yeelirrie project, the Cameco-Mitsubishi's Kintyre joint-venture, Energy and Minerals Australia's Mulga Rocks and Paladin's Oobagooma/Yampi and Manyingee projects.

continued.....

Uranium Spot Price Unchanged

Ux consulting reports that spot uranium U3O8 was unchanged as of August 4, trading at $64.50 USD/LB.

The uranium futures market is showing a moderately bullish outlook with December 2008 uranium futures last settling at $72 USD on the NYMEX.

Republican Presidential candidate Sen. John McCain is calling for the construction of 45 new nuclear reactors by 2030.


Senator McCain stated.........
"Every year, these reactors alone spare the atmosphere from the equivalent of nearly all auto emissions in America. Yet for all these benefits, we have not broken ground on a single nuclear plant in over thirty years,"....."And our manufacturing base to even construct these plants is almost gone."

In addition to the 45 new reactors by 2030 the McCain plan also outline a goal of an additional 55 nuclear reactors to serve the US market.
McCain outlines nuclear plan

Analysts Predict Uranium Prices To Stabilize

Industry analysts John Redstone and John Hughes of Desjardins Securities are predicting that uranium prices will begin to consolidate and settle around $60 US.

"We expect supply growth to match our most aggressive demand growth profile, keeping total inventories well above adequate levels," they wrote in a note to clients.

Article/Report

Cameco Warns Of Possible Contamination

Ottawa (NYT)---- Cameco (NYSE CCJ) the world’s largest uranium producer, has told the Canadian nuclear regulator that its refinery might have leaked uranium, arsenic and fluorides into Lake Ontario.

The plant at Port Hope, Ontario, across the lake from Rochester and down the shore from Toronto, first refined uranium for the Manhattan Project during World War II. It has been temporarily closed since July to remove contaminated soil.

“We’re anticipating that material may have been entering the harbor,” Mr. Krahn said, adding that Cameco did not know how long it would take to confirm any possible pollution.

Continued New York Times

Cameco Net Income Doubles

Cameco (NYSE CCJ) announced that first quarter net income more than doubled to $133 million as uranium demand resulted in increased sales.

The Toronto Star reports........

Cameco, the world's top uranium producer, earned $133 million, or 37 cents a share, in the quarter ended March 31. That was up from $59 million, or 16 cents a share, in the year-earlier period.

The profit was shy of the 40 cents a share expected by analysts polled by Reuters.

The May 2, 2008 spot price for uranium provided by the Ux Consulting Company LLC was $65.00 US per pound.

Ux Consulting reports that spot uranium prices are unchanged as of 4-28-08 at $65USD per pound.

Uranium Spot Price Posts Further Decline

Ux Consulting reports spot uranium prices down $3USD to $65USD per pound.

TradeTech reports a decline of $4USD to $64USD.

Uranium Hits 16 Month Low

TradeTech reports that Uranium oxide for immediate delivery fell to $69 a pound, down $2 from the previous week.

``Although recent transactions have absorbed a significant quantity of supply from the spot market, additional supply continues to emerge,'' TradeTech said.

Uranium Sector Moves Higher Amid Takeover Rumors

Cameco and Uranium One are seeing increased buying interest following a signal that China Nuclear Corp. is seeking acquisitions and partnerships with Canadian uranium producers.

``It's definitely a bullish development for the uranium space,''....... ``It signals China entering the nuclear space and the uranium space in a big way.''.....analyst Max Layton quoted in Bloomberg.

Ux Consulting reports that spot uranium prices declined $2.00 U.S. per lb last week to $71.00 USD.

Uranium oxide inventories continue to build due to reduced processing capabilities. Cameco's (NYSE CCJ) processing plant remains offline and is not expected to resume production until the fourth quarter of 2008. Cameco's facility processes approximately thirty percent of the world's uranium oxide.

Shares of uranium provider USEC (NYSE USU) hit resistance at the 50 day moving average of $6.19 before closing slightly lower at $5.24, down 2 cents from Thursday.

Shares of Usec (NYSE USU) rocketed up more than 27% on Thursday.

"We are not hearing any rumors or news responsible for the bullish activity. But obviously people are betting that USEC shares might be running to fill the gap left on the charts created when they warned on Feb. 26 that their outlook would not match street estimates," said Jon Najarian, a founder of Web information site optionmonster.com in Chicago.

Uranium's Renaissance In The Age Of Global Warming