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« Mega and Cash Minerals Announce Drill Results | Main | Uranium: Spot price up another $2.00 to $80/lb »
Wednesday
Oct242007

Olympic Dam incurs more losses

BHP Billiton Logo 24sep07

A report released yesterday by BHP Billiton reveals that the company continues to incur losses through having to buy uranium on the spot market in order to fulfil existing contracts, according to The Age newspaper.

Uranium production for the September quarter was 933 tonnes, which is considerably short of the quarterly capacity of more than 1250 tonnes. If we consider that the spot price for uranium is currently $78/lb and Olympic Dam's uranium contract price is less than $US20/lb on-going until 2010, then things don’t look too rosy as this situation will continue to have a negative impact on the companies finances.

Olympic dam photo 27aug07

BHP is one of the mining industries giants so the uranium element of their business may not be so important, anyway the shares closed 8¢ higher yesterday at $46.00.

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Reader Comments (4)

Interesting Bob.
How many years ago is it ?, not many, when dear old Western Mining Corp had quite serious mining problems at Olympic Dam. I am not saying those problems were to do with uranium.

October 24, 2007 | Unregistered CommenterWarwick Hughes

TSX
Wednesday, October 24, 2007 - Extract Resources Opens the Markets
Peter McIntyre, CEO, Extract Resources, opened the markets today. Extract is an Australian company with offices in South Perth, West Australia and Windhoek, Namibia. Extract is a global company with an international board of directors. The company has a uranium focus, concentrated on Namibia where its key location sits 5km south of the world class Rossing Mine and 20 km west of Langer Heinrich. Extract trades on the TSX under the symbol EXT.

October 24, 2007 | Unregistered CommenterJoe

I quess that with this news that the price of uranium will be rising? Those producers and near producers that have cheap "in the ground" resources must surely be happy on hearing this report... BTW, oil is getting pretty d**m expensive. Is this going to help our stocks?

October 24, 2007 | Unregistered Commenterdaveydog

The price of oil is definitely playing its part at $80/$90, if and when it goes above the $100 level we should see the nuclear programmes around the globe accelerate.

October 25, 2007 | Unregistered CommenterUranium Stocks

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