Friday, January 23, 2009 at 09:15PM
Chart courtesey of www.uranium.info.
The uranium spot price stands at $51/lb according to TradeTech with the long-term price of uranium trading at $70/lb as depicted on the chart above.
On the 6 January 2009 we decided to put a toe in the water and purchased shares in Denison Mines Corporation at $1.66 and Crosshair Exploration and Mining Corporation at $0.25, other than that there are no changes.
Our intention remains to hold on to what we have as the damage has already been done to our uranium holdings, and we are holding our positions at heavy losses until such time that the uranium industry turns around, although we acknowledge this could be some time away. In the mean time we do intend to make the occasional acquisition as and when the opportunities present themselves
Here follows our portfolio update as of 24 January 2009:
Cameco Corporation – Watch
This uranium heavyweight closed down at $16.82 on Friday, down from $17.23 on 01 December 2008 when we last updated this portfolio. We currently have no position and are not buyers at this point.
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 $0.075, which is just above its 50dma.
Uranium Participation Limited – Hold
Not much change in this stock since our last portfolio update, now trading at $7.16 as opposed to $7.39. We bought at $11.97 on 21 November 2006 so still in the red with this trade.
Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 but it crashed to $0.48 at our last update, before recovering slightly to close Friday at $0.74.
Laramide Resources Limited – Buy
We bought 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 at the last update but closed yesterday at $1.86. 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 at the last update and closed yesterday $1.18. So, if you did decide to bag a few of these shares then well done.
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 at the last update and closed yesterday at $0.34
Aurora Energy Resources - Hold
We bought Aurora on the 5th March 2007 at $14.17 and it was trading at $1.21, at the last update and it closed yesterday at $2.17 a slight improvement but still a total hammering for our position. This is due the sell off in the sector, as well as licensing issues in the central mineral belt.
Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it was trading at $0.24, at the last update and closed yesterday at $0.41 for a slight improvement however still a very disappointing performance indeed.
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 $0.74, however it has made a slight recovery from trading for under 40 cents recently.
Other than sit tight through these torrid times, there is little we can do right now. This situation may remain with us for some time, so we will just have to hold on until the argument for nuclear power begins to take centre stage again and gives the uranium price a boost.
However 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 favourites uranium stocks as this tiny sector begins a slow course of recovery.
Have a good one.
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