Time to buy uranium stocks: Deutsche Bank
Monday, October 1, 2007 at 10:33AM
Uranium Stocks in Uranium
Deutsche Bank 01oct 07

Deutsche Bank's Global Markets Research in Australia see now as a time to buy into uranium stocks and suggest Energy Resources of Australia Ltd (ERA) which has the Ranger mine in the Northern Territory and Paladin Resources Ltd as the vehicles best placed to take advantage of the coming price rises in uranium.

We have to agree with them about buying uranium stocks although we do not own either of their recommendations. Maybe someone will write in and tell us why these two stocks offer better value than the other front-runners in this market place.

The article goes to say that:

A revision on a June quarter assessment was that the projected 2007 spot price would average lower at $US101.35/lb, would then average $US128.75/lb in 2008 and be about $US130/lb in 2009 before tapering to $US95/lb in 2010.

A serious imbalance would remain between supply and demand until 2009 "at the very least," the latest report said.

However, "the risks for more potential market deficits beyond then are considerable."

If their projections are correct then it should bode well for all of the quality uranium mining stocks. A slightly more pessimistic study was compiled by resources Capital Research of Sydney, Australia, who are predicting a near term spot price of $90/lb by early 2008 and 120/lb by September 2008.

The above article was alerted to us by one of our readers and was carried by Mineweb if you wish to read the whole thing then just click this LINK.
Article originally appeared on Uranium Stocks (http://www.uranium-stocks.net/).
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