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Thursday
Sep062007

Crosshair Exploration and Mining Corporation: No sign of recovery!

Crosshair logo 05sep07
It is disappointing for the holders of this uranium stock, as there as yet appears to be no signs of recovery for one of this industries favourate uranium plays.

The chart tells us everything, from a high of $4.00 to $1.23 for a fall of some 70%. Other stocks in this sector have formed a bottom and would appear to be on the road to recovery. Crosshair has hit the bottom but maybe now we will see some consolidation at these low price levels before confidence returns to lift this stock back to its former glory.

Crosshair chart 05sep07


We have traded this stock in the past but are reluctant even at these prices to make a purchase. Crosshair will remain on the Watch List until we see some signs confirming that it has indeed stabilised and can head higher.
Tuesday
Sep042007

Uranium: Spot price $85/lb

Uranium Spot Price 04sep07


The uranium spot price continues to drift downwards to record a drop of $10/lb.






This data is brought to us courtesy of stockinterview who based their report on Friday’s issue of Nuclear Market Review compiled by TradeTech. If you can find the time please visit both of these web sites they are a mine of information.

To quote the editor of Nuclear Market Review, Treva Klingbiel,

“This decrease in the price is largely due to the presence throughout the month of sellers driven by cash requirements, such as the US Department of Energy (DOE).”

Please forgive us for being sarcastic but it would be true to form for a government department to find the bottom of the market and then make a sale. This reminds us of the ‘prudent’ British Chancellor, Gordon Brown who managed to find the bottom of the gold market before selling most of Britain’s gold reserves in a series of pre-announced auctions.

As a headline this is bad news however the long-term indicator remains unchanged at $95/lb. To us this long-term indicator is far important than spot price, which is subject to the daily knee jerk actions of all and sundry. As we have said previously the price has swung like a pendulum and is now the lowest it will be for the remainder of this year, in our humble opinion.

The communiqué goes on to say:

“However, long-term fundamentals still point to uranium supply shortages, with difficulties and hurdles ever present in the development and permitting stages for uranium mining companies.”

Uranium stocks may well be sold off today on the back of this news so for us it will be a case of take it on the chin, hold on tight and look for the odd bargain.
Monday
Sep032007

UraMin Mark Two: Niger Uranium

Niger Map 03sep07


Niger Uranium, a new uranium company is to be floated on the London Stock Exchange for around £40 million on 13th September 2007 according to Britain’s The Telegraph.

This company is a joint venture between Northwestern Mineral Ventures of Canada and UraMin who were recently bought by the French giant Areva. UraMin began life on London’s AIM Exchange when it was floated for around £120 million to be taken out for £1.2 billion recently. The report goes on to say, UraMin's management is now running Niger Uranium, which has eight licences in Niger and began drilling in June. It is some distance off producing uranium.”

The eight licenses are Irhazer, In Gall, Damas 1 to 4 and Dabala 3 and 4 and cover an area of 6,773 square kilometres.

Northwestern Mineral Ventures trades on the Toronto stock Exchange under the symbol NWT at around $0.70, and OTCBB as NWURF.

Please be aware that Northwestern Minerals has undergone a name change as is now known as NWT Uranium Corp

We think that this is worth watching.
Friday
Aug312007

India: To catch the Nuclear Bus

The Prime Minister of India, Manmohan Singh, is being very smart regarding his country's nuclear power program.

India Being Very Smart About Nuclear Power

Today he said:

'There is today talk ... of a nuclear renaissance. We cannot afford to miss the bus or lag behind these global developments. India is now too important a country to remain outside the mainstream in nuclear power growth,'


The Prime Minister also added that India would be capable of doubling its nuclear power generation target with co-operation from other nations. He did not say that India could double its nuclear power generation, but double the target which is already an ambitious one, which aims to increase generation to 40,000MW by 2030. So if the target is 40,000MW, then the PM is saying that nuclear generation could reach 80,000MW. Currently, nuclear power plants in India can produce 3779 Mwe, this is a massive increase in nuclear power, and therefore demand for uranium.

Prime Minister Manmohan Singh has hit the nail on the head when he talks of “missing the bus”. The world is moving towards nuclear power, and India wants to be ahead of the game. If they fall behind and miss the bus, they might not be able to find the uranium to fuel new nuclear power plants or may see the construction of nuclear power plants severely delayed if large nuclear contractors such as Areva are busy building plants for other countries. By signing deals with Westinghouse Electric and getting the ball rolling in the Indian nuclear industry, India will reap huge benefits in years to come. Whilst everyone else is scrambling over the last drop of oil, or frantically rushing to build nuclear power plants, India will already be well on the way with their nuclear program, reducing reliance on foreign fossil fuels and allowing the economy to grow unhampered. Manmohan Singh knows that power is essential to keep the Indian economy growing and he knows nuclear power is the way to secure the economic future of India.

There are currently 439 nuclear reactors operating in the world, using up 66,529 tonnes of uranium a year. Add to that the 34 nuclear reactors that are under construction and the 81 reactors that are on order or planned, plus the many hundreds of nuclear plants that are needed and not yet announced, and the fundamentals for uranium are superb. Do not be deterred by this recent correction in the uranium price and stocks. The uranium bull market is far from over and this correction is a great time to buy some more uranium stocks. Stay updated on which uranium stocks could be good buys and what is happening in the uranium market by subscribing to the FREE Uranium Stocks Newsletter.

Wednesday
Aug292007

Uranium News From Australia and Mongolia

Australia and Mongolia are two of the richest countries in terms of uranium reserves, with Australia having the largest uranium reserves in the world.

Australia is about to finalise a deal with China in which Australia will supply China with uranium.


"We believe that the final agreement (with Australia) will be reached very soon," Chinese Assistant Foreign Minister, He Yafei told reporters.

He Ya-fei Chinese minister 29aug07

We are not sure how many people realise how smart China is being here. We think it is possible that China already secretly plans, or intends to plan, hundreds of nuclear power plants across China to provide power for their ever growing economy. If the Chinese government announced tomorrow that they were going to build 300 nuclear power stations, we would probably see every uranium miner in the world add another zero to the price of their uranium contracts overnight. China does not want to pay more than it has too for its uranium, therefore China is buying up uranium, via deals such as this one with Australia and probably through more deals that we don't hear about. Therefore when China does start building their nuclear power stations, they will already have most of the uranium they need. We are of course simply speculating that this is what China is doing, but it is a possibility and it would certainly be what we would do if we were in power in China.


In news from Mongolia, a uranium company called U3O8 Corp has acquired two exploration licenses in Mongolia as a result of a nearly completed acquisition of another uranium company, Mongolia Energy Limited and Tooroibandi Limited, a subsidiary of Mongolia Energy Limited. U3O8 is a good uranium company which we have followed closely and often considered adding to our portfolio. This is a very smart move by U3O8, buying up companies at the bottom of this correction and we do not know why other uranium companies are not doing the same.

Where are the sharks?

The fact that U3O8 is prepared to make investments in uranium project in Mongolia gives us confidence that the situation there is not as bad as many investors first thought. Khan Resource fell considerably on news that one of their permits had been revoked. We signalled a BUY on that news for a short term trade and closed the trade yesterday for a 15% profit in 10 days.

One can stay updated and informed on the uranium market and uranium stocks by subscribing for FREE to The Uranium Stocks Newsletter.
Tuesday
Aug282007

Aurora Energy Resources: to add 42/lbs million of uranium

According to the FP Trading Desk Aurora Energy Resources Incorporated is expected to add 42 million pounds of uranium to its resources base.

A steady flow of news should now be forth coming as the drill programme advances towards its target of a minimum of 75,000 metres in 2007.

A quick look at the chart and we can see that Aurora is back on the recovery trail with the stock price heading north and all of the technical indicators turning positive.

Aurora Chart 28aug07

Once the price of uranium stabilises removing some of the uncertainty we should see quality uranium stocks such as Aurora do well.
Tuesday
Aug282007

Uranium Stocks: Is it turnaround time yet?

Its the time that all uranium stock holders have been anxiously waiting for. The day of turnaround. The day when the correction ends and our uranium stocks start ticking upwards again.

lam28aug2007

We have always been absolutely confident that this turnaround would come, the fundamentals are relatively unchanged as countries all over the world are turning to nuclear power, and therefore uranium. The only question was, when would this day come?

The answer is that although we are still not totally certain, it is possible that that day has already been. Depending on which uranium stock you look at, the “bottom” could have happened in the last fortnight.

Looking at the chart above for Laramide Resources, we can see a wave of selling drove the stock down to $3.95. More shares were sold in that final drop, which could be the “final capitulation”, than have been during any trading session over the past two years. This could well mean that those trading sessions were capitulation scenarios we were looking for. Also, one should note that from this possible bottom, Laramide has gained nearly 65 per cent. This is evidence of just how much these uranium stocks can move. The correction may have been dramatic, but drama works both ways, and we could see an equally dramatic turnaround and bounce back in Laramide and other uranium stocks.


mga28aug2007

Mega has also impressed, with gains of 71% from its bottom and Strathmore has risen 67% since its “bottom” and even if one takes the $2.00 level, STM is still up 42%. This shows that investors are now becoming more prepared to buy uranium stocks. Prepared not only buy them, but pay large premiums from the bottoms, rather that entering low bids and waiting for desperate sellers to crack and hand over their shares at a ridiculously low price.

stm28aug2007


These events may be an indication that confidence is returning to the uranium market, and once we see some serious volume of U3O8 being traded at decent prices, this will give the market even more confidence and give the stocks new life. We wrote that many uranium stocks were looking like good buys on the 24th August, and we signalled a BUY on Ur-Energy, although we really could have given a BUY on the majority of stocks in our portfolio. We feel that this correction is massive opportunity to purchase uranium stocks at fantastic discounts. As the recent bounce shows, uranium stocks are more than capable of bouncing back to their old highs and beyond. Although we are not yet 100% certain that we have seen the bottom, we are confident that future downside in uranium stocks is limited and the upswing is coming very soon and it could be as dramatic, if not more dramatic than the correction.

Stay updated on the uranium market and informed on investment opportunities in uranium stocks by subscribing to our FREE Uranium Stocks Newsletter.
Monday
Aug272007

Khan Resources Incorporated: Speculative trade now closed

Khan logo 27aug07
During the turmoil on the 17th August 2007 we bought some more shares of Khan Resources Incorporated for $1.70. The purchase was made as a speculative trade as Khan announced that they had a problem with license 9282X as it was considered to be invalid by the powers that be in Mongolia.

We were of the opinion that the management team at Khan would resolve this problem and therefore we went against the flow of selling and made an investment.

We have no new news to offer you but the stock price has started on the road to recovery. We still have confidence that it will continue its recovery and regain its former higher trading price.

Today we decided to sell at the higher price of $1.96, in order to close this position. This gives us a profit of $0.26 or 15.29% in 10 days. We are happy to take this profit as it was generated over a short time span. The downside could have been that the stock did not recover so quickly and we would have had to hold Khan for longer. That’s not a problem for us as we like the stock very much and still hold their shares as part of our core holding in uranium stocks.

From time to time we will make short term trades such as this so stay tuned but don’t place too much of your funds into any one trade and as always, spread your risk over a number of stocks and only use your ‘gambling’ money on this sort of trade.

Stay calm things are on the up.



Monday
Aug272007

Olympic Dam Extension: When?

BHP Logo 27aug07


The resources at the Olympic Dam Project owned by BHP Billiton could be 50 per cent greater than previously calculated. The future chief Executive Marius Kloppers said:

"It wouldn't surprise me if it turns out to be the second-largest base-metals ore body ever discovered,"

He also said:

“We remain absolutely confident that Olympic Dam will be the pre-eminent supplier of uranium, underpinning much of the nuclear renaissance that is being experienced as a response to the greenhouse concerns that the world currently is seeking solutions for."

This is a long term project and we have no doubt that the time spent now on the methodology, the planning and even a proto type to ensure a smooth and orderly development, will be time well spent. This entire project could have a 100-year life span, providing uranium to the whole world. This project also has the added kicker of copper, gold and silver but we will put that to one side at the moment.

Olympic Dam Photo 27aug07

Now if you have ever worked closely with an experienced Project Manager ask yourself this question: What was the single most used word he or she ever uttered?…………………WHEN? Would be my answer. The Project Manager has to get beyond:

We are getting there
Progress is fine
We can make up lost time
What schedule?

“The Olympic Dam expansion had slipped a bit”
Quote.

Why didn’t the reporter ask from what date to what date? Investigative reporters where are you? We should not be scared of the big names we should be digging deep in order to ascertain a clearer profile of this project.
Olympic dam photo1 27aug07
The need to get it right, to be more capital efficient as they say, are motherhood statements which apply to any project. We don’t see any specifics here, any detail, which in turn suggests that we are still a fair way from the starting post for this project extension. No doubt that the shadow of Cigar Lake looms large and the concerns of the engineers are being heard and built in to the methodology for this project.

Is this the only project that has slipped a bit? Apparently not, the Ravensthorpe nickel project in Western Australia and the Atlantis oil and gas development in the Gulf of Mexico, both of them over-budget and behind schedule.

The point we want to make is that the schedule is of paramount importance and that time is money. Until BHP Billiton issue a detailed Methodology along with a detailed programme for the project the ‘on-stream’ estimates are nothing more than guestimates and should be treated as such. In a previous article touching on this area of critical factors we said that we wanted to see the following:

A well-written Mission Statement
A concise Method Statement
A detailed Schedule based on CPA and computerised utilising profession project management software not the colourful $50.00 version.
Resources applied to the schedule of labour, plant, equipment, money, etc.
An Expenditure Profile that we can monitor, if you are not spending the money you are not making the progress.


The above requirements also apply to the Olympic Dam Project

We are a long way from this project geographically speaking and therefore ask any of our Australian readers who are close to this project to write to us and illuminate this situation for the benefit of all of us.

Thanks to B for alerting us to this article by The Advertiser, which can also be located on news.com.au.

Friday
Aug242007

Ur-Energy Incorporated: BUY

URE Logo
The uranium sector has suffered a serious hammering during the global market sell off; however, many of the uranium stocks are now on the road to recovery.

We have just completed a review of the charts for many uranium mining stocks and the patterns although not identical are fairly similar. The story is one of a downtrend being formed by a stock and then the sell off acting as a turbo charger in accelerating this sector into massively oversold territory. Gut wrenching indeed but it is not a loss until you hit the sell button, which we have not done. To see this recovery commence gives us a modicum of comfort.

We have chosen one stock to buy today but there are many others that are in same boat, so if you have a favourite uranium stock or stocks now would be a good time to add a few more to your portfolio. However expect volatility and look beyond the next few months for significantly higher prices.

The stock that we are going to purchase today is Ur-Energy Corporation (URE)

Ur-Energy Chart:


Ur Energy Chart 24 August 07


From the chart above we can see that the recovery has commenced as bargain hunters accumulate this stock. The technical indicators, RSI, MACD and the Stockastics have all moved into positive territory.

The bottom fishing will continue and you will see different individual uranium stocks putting on large one day gains as stock pickers give their approval to go back into the water for their particular favourite. This has already started with URE and the announcement yesterday that the company had a strong cash position, C$88.7 million, had a positive effect with the stock jumping 5.96%.

Bill Boberg, President and Chief Executive Officer, said yesterday,

"The basic fundamentals of the uranium market and of Ur-Energy remain unchanged. Medium and long-term uranium supply continues to be a problem. Given Ur-Energy's production schedule, low capital requirements, projected low cost of production and first-class technical team as well as a secure treasury sufficient to take us well into production, Ur-Energy is uniquely well-positioned in today's market.

Interesting to note this some analyst’s comments yesterday sent to us by one of our readers:

In an analysis published Thursday, Canada's Haywood Securities predicted that, by year-end, the spot market for uranium could regain some of the ground it has lost since the metal reached a high of $136 in mid-June.

The BBC also a had a news item that appeared to have gone unnoticed: The West African state of Guinea is the latest country in Africa to announce that it is seeking nuclear power. This is another country that we can add to the list of future consumers of uranium. Due to the shortage of electricity these students are studying in a car park.

African Students 24 aug 07

Today we purchased URE for $3.05.

Ur-Energy Incorporated trades on the Toronto Stock Exchange under the symbol URE.

Have a good one and many thanks indeed for all the alerts that you send us.