October 21, 2009

Bullish Uptrend For Uranium Stocks - About To Begin

Update Wednesday 21st October 2009

UPDATE 2-BHP: Olympic Dam force majeure.

Full Output Not Expected Until .......... June - July 2010

Australia's BHP has declared force majeure on uranium and copper supplies from its stricken Olympic Dam mine on Wednesday, saying it did not expect to resume full output there until early next year.

BHP Billiton said the Australian operation, the world's fourth largest copper deposit and largest known uranium deposit, was running at only 25 percent of ore-haulage capacity after a runaway skip took its main shaft out of operation this month.

"We anticipate that ore-hoisting will be at approximately 25 percent of capacity until full production resumes in the third quarter of the 2010 financial year (July/June)," the company said in its first-quarter production report.

Uranium Spot Price Uptrend Alert

UxC's weekly spot price indicator has risen to US$47.75/lb. Its Mid-Term price indicator remains unchanged at US$55/lb.
Long Term Contract Pricing remained steady at US$65/lb.

Possibility This Could Be The Trigger To Send A Bullish Uptrend To Investors

TradeTech’s Uranium Spot Price Indicator is $47.50 per pound U3O8—up $2.00 from the October 9 value. The spot price continued to climb this week on the news that BHP Billiton’s Olympic Dam mine was shutdown following a mechanical failure to the main haulage system. BHP will provide an update of the situation on October 21. Until then, sellers are taking advantage of the momentum created as a result of the accident by raising offer prices.

Currently, all active demand can be characterized as discretionary in nature. While buyers are not “chasing” the price up, a number of parties are assessing the market and have concluded that purchases at current price levels are economical.

Six transactions were concluded this week; all at prices at, or very near, today’s Spot Price Indicator. Buyers included utilities, traders, investors, and financial entities. Offers are due next week to a non-US utility seeking 300 thousand pounds U3O8.

Uranium stocks surge on mine shutdown

Australian report says BHP Billiton has declared force majeure on deliveries from Olympic Dam following shaft accident Update To Be Announced On Wednesday October 21 2009





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