Uranium Auctions: The Pace Quickens!
Sunday, June 10, 2007 at 10:08AM
Uranium Stocks in Uranium
Auctions


There are two days to watch this week and they are Tuesday and Friday.


On Tuesday, June 12th, Denison Mines via Uranium Participation Corp will receive bids for 125 thousand pounds U3O8 for a June delivery.

On Friday, on June 15th, Nufcor will receive bids for 200 thousand pounds U3O8 and 100 tUF6.

Fresh on the heels of two recent uranium auctions that have pushed the price of uranium up to $138/lb according to TradeTech come another two uranium auctions this week. The excitement builds as we watch the hottest game in town unfold before our very eyes.

Through our mythical comic strip starring Sir Peter Misfit of Gigantum Power Corporation we had arrived at a bid of $137.50/lb for the last auction with Uranium-stocks advising that a bid of $140/lb would be required to secure this elusive precious metal. (As uranium is almost half the price of silver here at uranium-stocks we believe that it should be upgraded to reflect its importance) Back to this week where we are faced with two opportunities to get it wrong! It is interesting to see this metal come to the market as the current holders obviously think it is time to take some money of the table and lock in their paper profits.

To put it into context Uranium Participation has approximately 4.2 million pounds of U3O8 and 1.2 million Kg of UF6 or Uranium Hexafluoride. So in percentage terms they are selling 125 thousand pounds U3O8 from their stockpile of 4.2 million pounds, which is approximately 2.9%. We see this as a reasonable move to lock in some paper profits along the way but we do not see it as having a major effect on the price of uranium.

We will keep you informed as and when developments become apparent next week and may we suggest that we could be looking at $150/lb some time next week. As for uranium stocks we are not selling but holding and looking for possible bargains during the summer doldrums.

For disclosure purposes we need to remind you that we do hold shares in Uranium Participation.
Article originally appeared on Uranium Stocks (http://www.uranium-stocks.net/).
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