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« Tasmania: Now it is legally possible to mine uranium! | Main | Uranium: The quiet is eerie! »

Uranium: “Demand is understated and supply is overstated”

Uranium One logo 21sep07

The words of Neal Froneman the CEO of Uranium One in an article carried by Mining Weekly who went on to say that:

“The supply and demand fundamentals are still the same as a few months ago.” He also expressed “amazement” about the number of people who are focused on the spot price and not the long-term price of uranium, which is far more representative of the market.

This is something we have said many times.

The article goes on to say Mr Froneman expects prices to remain between $85/lb and $90/lb over the next few months, but to claw back to the mid-$100 range in the medium term. (18 months)
Uranium One is pursuing a listing on the main board of the London Stock Exchange, which would give the company exposure to both the British investors and the European investors.

From our mailbag we can see that there is reluctance to invest in companies that are not listed on the London Stock Exchange. We are not sure why this is, it could be short sightedness on behalf of the investor or just too much of an inconvenience for the stockbrokers. Anyway a listing on the big board in London should certainly increase exposure and liquidity.

Uranium One has a market capitalisation of $4.44 billion and is listed on the JSE and on the Toronto Stock Exchange as UUU where it closed yesterday at $12.15.

For disclosure purposes we do not own this uranium stock but do not let that put you off.

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Reader Comments (6)

September 21, 2007 | Unregistered Commenterbob

Since I own UUU, I am always happy to hear positive news from Froneman. But we don't know if what he says is true or if he is trying to counter negative statements with his own positive views. It is in his interest to have investors take a positive view of the uranium market.

I am surprised that Uranium-Stocks does not have a position in UUU. It appears to be a company with a tremendous vision and has a good market cap, and enough volume to attract investment funds.

Thanks for your constant updates on the market.

Bob G

September 21, 2007 | Unregistered Commenterstoneygulch

I think the modern consumer with all his and her electrical appliances that weren't around in our parents day not to mention electric vehicles that are just now coming to the market and needing the "juice" to keep them running, well it's obvious that we're going to need electricity generation from somewhere. Conservation might help a bit but nukes are the way to go for carbon free baseload "juice".

September 21, 2007 | Unregistered Commenterdaveydog

UUU has come down from a peak of around $35 so at these levels of $12 or so it is on offer at a great discount.

There are a number of uranium stocks in the same boat so we need to review our portfolio and set the strategy to take advantage of these opportunities.

September 22, 2007 | Unregistered CommenterUranium Stocks

When I checked the 3-year high, it peaked at $18.65 in April 2007, it has never gone to $35.

However, if it even comes close to CCO in terms of a market-leading uranium miner, as it has stated that is its goal, then I can see $35 easily being surpassed at some point, maybe in the next 18 months as more production comes on-line and the results of sales hitting the bottom line. We have to remember that CCO has split 3:1 and then 2:1 in the past 2 years.

Uranium prices at $85/lb. will be very profitable for those in production mode.

September 22, 2007 | Unregistered Commenterstoneygulch

You are correct, on the the tsx it was $18.65 (

however I looked on google finance and got the $35 figure?

must pay more attention! sorry about that.

September 22, 2007 | Unregistered CommenterUranium Stocks

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