Olympic Dam incurs more losses
Wednesday, October 24, 2007 at 5:55AM
Uranium Stocks in Uranium Mining Stocks
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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