Aurora Energy Resources Incorporated: Up 8.14% Yesterday

A super performance by Aurora as it joined the uranium stocks leaders in forging ahead on a turnover of 633,000 shares.

As we can see from the Aurora’s chart the stock price was drifting lower and then bounced at the 200dma for a gain of $1.50 or 10%. The RSI has recovered from negative to neutral, the MACD and the STO are in negative territory but have turned upwards so we could just be in for a little run in the near term.



There has been no major news since we last wrote about Aurora on the 5th June when they commenced their drilling programme, which is a little disappointing in our opinion. We are aware that investments such as this one should not be tracked at a ‘micro’ level and that it takes time to implement such programmes. We would have preferred an interim news release as it has been six weeks since the last one and as we know investors like to be fed. As soon as we have an update we will post it for you.

The reason for the sudden upward movement in the uranium stocks sector would appear to be on the back of the further problems at Cameco’s Cigar Lake project which to us appears to be suffering from some slippage to their recovery schedule. It goes without saying that without this project there is a vacuum to be filled by other uranium suppliers, so the rest of the market benefits from Cameco’s troubles.

It will be interesting to see if there is a domino effect on the spot price for uranium over the next few days or weeks. And that reminds me; there was an auction on the 10th July and we still have not heard the results! In general though the spot price is being reported on, as under some pressure so maybe we should expect a fall of a few dollars.

Japanese Reactor To Reduce Nuclear Waste By 40%

In a team effort by both the Japanese government and private sectors, the next generation of nuclear reactor is being developed with increased capacity and waste reduction of up to 40% compared with today's commercial reactors.

A total of ten companies will joining with the government in this 60 billion yen project and the plan is to have this new reactor commercially operational by 2025.

Companies including Tokyo Electric Power Co Inc, Toshiba Corp, Mitsubishi Heavy Industries Ltd and Hitachi Ltd will be involved in this project.

As well as reducing waste by up to 40% the new reactor will also be able to generate 1.8 million kilowatts which is about 30-60% more than existing reactors.

This is great news for the nuclear industry and for all uranium bulls. One of the main objections to more nuclear power plants is that the radioactive waste is very dangerous and as we cannot deal with it at the moment this is a big problem. However this new reactor will reduce this problem by 40% and so will make nuclear power plants more acceptable to build.

With more nuclear power plants being built, which we believe is invertible, there is a greater demand for uranium so this should send the uranium price and the value of our uranium stocks significantly higher. As for the problem of nuclear waste, although we cannot deal with the waste at the moment, technology is evolving very quickly. In years to come, it is likely that the world will find a way to deal with nuclear waste, but we must give it time, considering nuclear technology itself is only about 60 years old.

France and Algeria to Share Nuclear Technology

Algeria and France have entered into talks about sharing nuclear research and technology.



France is being very smart here.

These talks are taking place as part of the French President Nicolas Sarkozy's efforts to create a union of Mediterranean countries and Algerian President Adelaziz Bouteflika has indicated interest in taking advantage of French nuclear expertise. It looks like Algerian engineers may be able to receive training from French nuclear power group Areva, the largest nuclear power group in the world.

By co-operating with Algeria over nuclear issues, France is gaining an ally whereas the USA appears determined not to co-operate with other countries over nuclear power, and looks to be trying to keep nuclear power as the West's secret.

The best example of this is in Iran. Instead of banging heads with Iran, the USA should be offering to help with the building of nuclear plants. By doing this they would gain another friend in the international diplomatic arena and would also be able to monitor the progress of the nuclear program to ensure everything was going smoothly and safely. America spends a fortune on intelligence operations trying to find out how far Iran is with their nuclear program, instead of this the USA could be making money by building plants for Iran and they would also know how far Iran was with their project as they would be the ones building it.

As the world shifts to nuclear power, more and more countries will get nuclear technology, whether the people want them to or not. What should be happening is that countries with extensive knowledge of nuclear power such as France and the USA, should be helping other countries develop nuclear power and by doing this they can ensure that the projects are carried out safely. Of course as the world moves from burning fossil fuels to utilizing nuclear technology, there will be a greater demand for uranium pushing up uranium prices and uranium stocks.

Strathmore Minerals: Found a Bottom and Consolidating

Having fallen over 27%, Strathmore Minerals appears to have formed a bottom and found support at around $4.00.



It is now consolidating and looking to rise in the next leg up in the uranium bull market.

All uranium stocks have had a dramatic sell off, a correction that was due because of the dramatic increase in stock price in many uranium companies.

After a correction, stocks usually have a period of consolidation before moving onwards and upward in another rally of their bull run.

Well we have seen the sell off, and now many stocks have found a bottom and are consolidating.

Laramide has begun consolidating as has Mega Uranium and many other uranium stocks. Still to find a base and consolidate are companies such as Uranerz but this phase is spreading throughout the uranium sector and so it will reach all uranium stocks eventually.

But Strathmore has done this now which is a good sign as the stock can construct a base upon which it will build the next leg up of its bull run.

About ten days ago, in an effort to create more shareholder value, Strathmore announced they were going to spin off their non-core assets into Fission Energy Corp, a new company. We have yet to decide whether we will continue to hold Fission, but we shall probably remain shareholders in Strathmore Minerals.

Strathmore Minerals Corp trades as as STM on the TSX Venture Exchange.

Amazing New Discovery at Cijar Lake!

Today, explorers found the most significant discovery at Cijar Lake since the 226.3 million pounds U3O8.




Have a good one!

There Is Always A Bigger Fish

There is a saying that “There is Always a Bigger Fish”, meaning that no matter how big and scary a fish may be, there is always a bigger one that could swallow him up.



This saying can also be applied to the stock market, where speculation over what merger and acquisition activity there might be, with investors always looking to the large companies to takeover the smaller stocks. Usually it is the bigger companies that take out the smaller ones, for they are usually the ones with enough financing for the deal and a nice new company can fit into the cogs of a large corporation quite easily.

In the mining industry, whenever takeovers are mentioned, it seems that the same old names keep cropping up again and again. The large companies are always “rumoured” to be buyers of this and that and although there may be absolutely no truth in the rumour, people associate the big companies with takeovers all the time, just because it makes sense. For example, in the recent merger talks surrounding Meridian and Yamana Gold, a variety of names cropped up as “potential buyers”. All of a sudden, Agnico-Eagle, Kinross, Barrick and many more names were rumoured to be involved. Why does this happen?

Well generally, it happens because people take one look at the news release, and see that a gold merger may take place. When considering other possible players in the deal, having read the word “gold” they begin thinking of every household gold mining company they can and proceed to blurt them out as “potential buyers”. Of course, these companies are potential buyers, as is every single company on the stock market for every single other company on the market. So speculating who could be a potential buyer is little more than guess work, as all one is doing is looking at other large companies on the stock market in the same sector of that of the deal.

In the uranium sector, whenever takeover talks are mentioned, Cameco is put forward almost as a default candidate. Other large uranium stocks are also put forward as buyers of smaller uranium companies as that is how it works, big buys little and gets bigger. Or is this actually the case?

Rarely do people consider that the big companies might also be bought out. Rarely to you see the headline, Cameco to be bought by X. Rarely do people in the uranium industry stop to think that companies like Cameco are actually small fish in the grand scheme of things and they could easily be swallowed by the really big fish, companies like Rio Tinto and BHP Biliton which are worth ten times as much!

However, does this mean that big fish like BHP are untouchable?

Absolutely not. Not only are there bigger fish then BHP but a company does not have to be bigger than another company to take them over. All a small company has to do to take over a company many times their size is to convince a bank or another financial institution that financing their takeover deal will be a profitable operation. Alternatively, a group of smaller companies could form a partnership to take down one of the larger stocks.

The point is that everyone is a takeover target. Do not assume large cap miners are safe from hostile takeovers, anyone can take anyone else out before you have time to blink. Its a dog eat dog world and targets can become predators.

Eagle Plains Up Over 77% Since Our BUY

We signalled a BUY on Eagle Plains at 53 cents on July 22nd, nearly one year ago.

Since then it has gained 77.35% as it closed at 94 cents yesterday.

Along with Uranium-Stocks.net we also run www.gold-prices.biz and www.silver-prices.net

We have provided some coverage of Eagle Plains on uranium-stocks.net before but we thought it was more suitable for our silver website as the company has more silver than uranium. However, please click here to see our latest update.

You can subscribe to our free Silver Prices Newsletter by clicking here.

More Trouble for Cameco at Cigar Lake

Cameco is in more trouble at Cigar Lake as they have announced that the mine will not be online until 2011.



According to the news release by Cameco, more flooding and dewatering issues have further hampered the world's largest undeveloped uranium project.

Cigar Lake was supposed to produce 9 million pounds of U3O8 annually with its originally estimated proven reserves of 113 million pounds. The project is a joint venture owned by Cameco, Areva Resources Canada, Idemitsu Canada Resources, and TEPCO Resources.

Taking Cigar Lake out of the uranium market is like taking Saudi Arabia out of the oil market. It creates a devastating supply squeeze that could push the uranium price and so uranium shares to extreme heights.

We are of the opinion that Cameco don't actually know the problem at the project. They have to find out what the problem is before they can even contemplate fixing it. At the moment their tactics are appear to be on a “hit and miss basis” with the company trying all sorts of strategies that are to no avail.


Cameco COO Tim Gitzel said that they were “making steady progress in bringing the project into production”. Well this latest release sounds nothing like steadily progress to us, it is a step back as it means that Cameco shareholders have to wait another year until Cameco think they can get the project back online...and it might not even come online then.

We are staying out of Cameco and in our smaller uranium stocks, which we believe will be more successful and profitable over the years to come.

Brazil Budgeting $540 Million for Nuclear Programme

The President of Brazil, Luiz Inacio Lula da Silva, said his country will budget approximately $540 million for its nuclear program.



The money will be spent over eight years on various aspects of nuclear technology such as uranium enrichment and perhaps a nuclear submarine.

Brazil has said its nuclear program is peaceful and it has no intention of pursuing nuclear weapons.

Silva, the President of Brazil, frequently speaks about nuclear power as a way to diversify Brazil's energy generation and he often talks about nuclear power being a way to fulfil growing demand for energy in Brazil, South America's largest economy.

At present, Brazil has two operating reactors, Angra 1 and Angra 2, which have a capacity of roughly 2000 megawatts. According to the Mines and Energy Ministry, an additional reactor, Angra 3 would raise the energy capacity to 3,300 megawatts. Angra 3 would cost around $3.6 billion to build.

Recently, the Brazilian government gave a preliminary approval to build two dams in the Amazon that would cost about $10 billion to $14.7 billion and produce 8 percent of current electricity demand about 6,450 megawatts.

Hydro Power is probably the only power source at the moment that is a better options than nuclear energy. However with the Brazilian government moving forward with both hydro and nuclear power, we are confident that Brazil will build more nuclear power plants and therefore will have to purchase more uranium, increasing the U3O8 spot price and the value of our uranium stocks.

Uranerz Energy Corp: Needs A Support

All uranium stocks have suffered a sell off and in recent weeks we have documented the end of the sell off in some uranium stocks as we have watched them begin to consolidate in preparation for the next rally.



Uranerz has not yet found a support, and until it does we would rather wait for a while, than buying now when it is uncertain just how far this stock will fall.

Although on the surface we see no problems with the fundamentals of Uranerz at the moment, we must wait for the stock to find a support level before buying, otherwise we risk falling further with the stock.

Other uranium stocks have begun to consolidate and find support levels. Recently we wrote about Mega Uranium needing to find a support level and then we wrote another article as soon as it looked like Mega had found this support. Laramide also has begun consolidating.


We will wait paitiently to see just how cheap this uranium stock is about to get before considering a purchase. As always, our readership will be kept fully informed.

Uranerz Energy Corp trades as URZ on the AMEX.