Uranium Spot Price Rises To US$41.75P/Lb.

Uranium Spot Up 25cents To US$41.75

According to the consultant, no less than five deals were successfully concluded during the week, causing some 600,000 pounds U3O8 to change ownership during the period.

In addition, notes the consultant, new demand has also become visible in the term market, though no deals have thus far been recorded.

The direct result of the increased willingness by buyers to accept higher prices has been for a small increase in TradeTech's spot price indicator by US25c to US$41.50/lb.

UxC Consulting now at US$41.75/lb.

TradeTech's mid-term price indicator has remained unchanged at US$50/lb as did its long-term price benchmark at US$60/lb.

DEEP YELLOW & TORO ENERGY - EXECTION OF THE NAPPERBY OPTION AGREEMENT

CLICK Image below To Access
7th May, 2007 "Execution of Napperby Option Agreement"
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The legal framework for this agreement was 3 years,
and the legal binding date was from Announcement. 7th May, 2007
"Execution of Napperby Option Agreement".

Therefore, a decision WILL be made within the next few weeks from TOE management to further this project and purchase it from DYL.

Here are the Details As Per Announcement on 7th May 2007

* Should the area not be fully diverted to JORC standards by this time, 13.2 million pounds will be assumed.

* A reference against the spot price of 8% will be used OR capped between $6 pound and $4.5 pound. Current spot price by UxC is $41.50 and 8% of the spot price is $3.32. Therefore, if Toro choose to purchase this deposit they will still pay the lower bound of $4.5 per pound.

* The latest JORC from Toro which I could find was released on 3rd March, 2009 which equated to 7.39million pounds (using 200ppm cut-off)

* Therefore, under this agreement if TOE was to purchase Napperby they will need to pay for the 13.2million pounds at $4.50 per pound OR $59.4million. The agreement states this can be by any arrangement by cash or shares.


NEWS AWAITS
Early May 2010

Could be some good trading opportunity's Swing Trading DYL & TOE over the coming weeks .

AUSTRALIA AGREES TO EXPORT URANIUM TO RUSSIA

Australia will ratify a nuclear agreement that allows the country to export uranium to Russia for energy purposes. “This will enable Australian uranium to be exported to the Russian Federation for civil, peaceful nuclear purposes,” said Foreign Minister Stephen Smith. The agreement is expected to strengthen cooperation on safeguards to protect exports as Australia and Russia “both stand firmly against terrorism and violent extremism”, he added.

Russia and Australia signed up to US President Barack Obama’s plan to secure all vulnerable nuclear material in four years earlier this month at a two-day summit in Washington that involved 47 countries.

Australia has the world’s largest known uranium reserves, according to estimates of the World Nuclear Association. Ten per cent of its uranium is found in Western Australia while BHP Billiton’s Olympic Dam mine in South Australia contains the world’s biggest uranium deposit. Energy Resources of Australia, controlled by Rio Tinto Group, supplies around a 10th of the world’s mined uranium.

URANIUM OUTLOOK REMAINS STRONG

Energy Resources of Australia Ltd (ERA) says the long-term outlook for the uranium market remains strong.

"Despite price weakening in 2009, the long-term outlook for the uranium market remains strong, with nuclear power recognised as a key element of the global energy solution," chairman David Klingner told the company's annual general meeting.

"While market prices have stabilised well below the historic highs reached in 2007, current prices are still significantly higher than for most of ERAs 30-year history, supporting investments to increase output," Dr Klingner said in a statement lodged with the stock exchange on Wednesday.

ERA reiterated that full year production and sales for 2010 were expected to be broadly in line with the levels of recent years.

Production and sales will be more heavily weighted towards the second half of the year.

Dr Klingner said the lower production, and consequent sales profile, during the first half is largely a consequence of mine sequencing and anticipated lower grades.

"We will continue to see higher expenditure on scheduled maintenance programmes, along with expenditure on ERAs significant development projects, during 2010.

"We expect that all of these factors will negatively impact earnings in the first half and for the full year."

Assuming that market prices remain slightly softer than during 2009, ERA expects the average realised sales price for the first half of 2010 and the full year to be broadly in line with 2009.