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« Special Income Report: Yields Of Over 40% Anyone? | Main | Uranium One Incorporated Drops 40%! »
Thursday
May282009

Uranium-Stocks: Portfolio Update 28 May 2009

Uranium Spot Price 28 May 09.JPG

Chart courtesy of TradeTech.

The uranium spot price stands at $50/lb with the long-term price of uranium trading at $70/lb as reported by TradeTech.

We are pleased to report that many of the uranium stocks have moved to higher ground since our last update a few months ago bringing some relief to our battered portfolio.



From time to time we do intend to make the occasional acquisition as and when the opportunities present themselves and have a number of exciting prospects on the watch list such as Extract Resources on the ASX.

Here follows our portfolio update as of 28 May 2009:

Denison Mines Corporation – Buy
Bought on 6th January 2009 for $1.66, a uranium stock that we had watched for some time but for various reasons we had never managed to purchase it. We are happy to own some of this stock and believe it to be a good quality acquisition, DNN closed at $1.82 yesterday

Crosshair Exploration and Mining Corporation – Buy
We never expected to see Crosshair trade as low as it is today so we acquired some on 6th January 2009 at a cost of $0.25, again we are pleased to own this uranium stock despite the price falling back over the last few months. CXX closed at $0.27 yesterday.

Cameco Corporation – Watch
This uranium heavyweight closed yesterday at $25.68 having been around $15.61 at the last time of the last update. This rapid rise tempted us into buying PUT options in anticipation of a correction. We bought the June 09 $25.00 PUTs for $1.40 per contract (CCJRE) on Cameco Corporation (CCJ) and they closed yesterday at $0.90. If Cameco keeps going up we will have to sell these contracts at a loss, but for now we will hold.

RPT Uranium Corporation – Hold.
We bought RPT on the 19th February 2007 for $0.42 and sold it for $0.62 on the 13th June 2007 for a profit of 47.6% in 4 months. We then bought it back at around 50 cents, however RPT closed yesterday at $0.145 up slightly from last time.

Uranium Participation Limited – Hold
Another improving stock since our last portfolio update, now trading at $7.90 as compared with $6.35 at the last update . We bought at $11.97 on 21 November 2006 so still in the red with this trade with a long climb ahead.

Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 but it crashed to $0.48 a few months ago, has started to recover slightly to close at $0.96 yesterday. So its still fingers crossed for this one.

Laramide Resources Limited – Buy
We bought LAM at $5.78 on the 28 July 2006 so again we are still in the red with this one, it was trading at 97 cents recently however has started to recover and closed yesterday at $1.87 having experienced some extreme volatility . When we were sitting on a paper profit of around 80% we sold half of our position in order to buy other uranium stocks, as we needed a bigger spread of stocks at the time.

Mega Uranium Limited
– Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA was trading at $0.72 recently and closed yesterday $1.76, again a very volatile uranium stock.

Khan Resources Ltd
- Hold
We bought Khan on the 5th March at $3.63 and it has since dropped to lower levels due to licensing issues with the Mongolian regulators. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) the stock rallied and we took a profit of 15% in a matter of days before the stock fell back again. Khan is still having a torrid time and was trading at $0.165 recently but it closed yesterday at $0.425.

Aurora Energy Resources
Has now been devoured by FRG which is both a gold and uranium play and we have included it in the gold portfolio.

Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it traded as low as $0.24, however, it closed yesterday at $0.58 still a very disappointing performance indeed and extremely volatile.

Ur-Energy
- Hold
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also bought again on the 24th August 2007 when we acquired more stock at $3.03, it closed yesterday at $1.60, having traded for sub 40 cents recently.

Other than sit tight through these torrid times, there is little we can do right now. This situation is improving as we can see by the increase in most of the stock prices, so we will just have to hold on until the argument for nuclear power begins to take center stage again and gives the uranium price a boost. We do believe that the worst is behind us now, so now is the time to be looking to acquire a few more of your favorite uranium stocks as this tiny sector begins a slow course of recovery.

Have a good one.

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Uran chart from u308.JPG

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Reader Comments (2)

Surprised you guys don't have any UEX. As you probably know Cameco owns just over 20% of the company and is in discussions with them for UEX to provide a tailings facility for C at their nearby Hidden Bay project. It's only 5km away.

The HB project will start as an open pit operation, and results are overdue from the 25000 meter drill program they started in January and finished last month.

It's not under a lake LOL, and Cameco needs the uranium lbs and ore feed. C will market the U from the HB project for UEX.

UEX got about half their props from Cameco when they were spun out to separately fund U explo in Sask back when U was too cheap for C to fund it themselves. Most of the rest of the props were jv'd from Areva also when U was very cheap. The HB project is however 100% owned by UEX.

The other major U find they have is their 49/51 U/A Shea Creek high grade project in NE Sask.

Important to note that all the UEX props were selected before the big rush to stake anything in the basin started, so one may assume they have pretty good props to explore.

Enjoy your commentary.

May 29, 2009 | Unregistered CommenterThreshold

Threshold,

Thanks for your insights they are very much appreciated. There must be a fair number of enterprises out there that we just haven't got to or were put off by the geo-political situation surrounding it etc.

So keep the comments coming it does help us and our readership to gain a broader view of what is available.

May 31, 2009 | Unregistered CommenterUranium Stocks

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