The uranium market is so thin that it is difficult to bring to you the exact spot price, however it does appear to have risen by six or seven percent, to the $90 - $91/lb level.

Our sources for making this statement include TradeTech who have said that the market had been stunned by the flood at Ranger and quote:

“ there were indications that the market price had risen, given responses to bids to purchase at higher prices. Consequently, TradeTech’s Spot Price Indicator rose this week to $90.00 per pound U3O8.”

Another sources is u3o8.biz who said quote:

“The uranium spot price hit $90/91 per pound today after flooding at Energy Resources’ Ranger Mine operation in northern Australia shut down operations and the company declared force majeure on its sales contracts.”

Finally there is one of our own readers ‘stoneygulch’ who has done a lot of detective work in tracking down the price movements and added this comment to the article entitled ‘Uranium: Not Another Flood’

I didn’t want to be seen to be making things up, so it was with great relief that I read the Summit Resources (SMM:ASX) letter to their shareholders (to reject PDN’s hostile bid) dated Mar. 13 (Australian date, they’re 1 day ahead of usa) and they ended it by stating that the spot price of uranium was now $90 lb.

So, that’s about the best we can do to bring you an update of the price of uranium.

Well what does another 6% rise, following on from the 13% rise just recently, mean to us?

It goes without saying that the pressure on the spot price is building and for those uranium stocks with pounds in the ground the asset value must be climbing incrementally with the price of uranium. It will be interesting to watch the trading on the Toronto Venture Exchange today to see which stocks benefit the most from this news.

In the red corner there will be those who are sitting on a good paper profit and just itching to turn it into cash and good luck to them. In the blue corner there are those who believe that this show has only just begun and they will sit patiently and observe the action. Then there are the newcomers who are not sure if this is a Bull Market or not, but Charlie up on the tenth floor is apparently doing well in this market sector. They want to be involved, and rightly so, but which of these tiny uranium stocks (by comparison to the majors that they already own) should they buy? Our guess it that the influx of this ‘new’ money will land on whatever is moving at the time or whatever stock has just had some air time, so we could see some abnormal increases in volume on stocks that we would not expect to be doing extraordinary well.

Either way we will not be selling. We are sticking with our prediction of $200/lb and intend to be fully invested for the best part of this Bull Market.

Enjoy today.

13 March 2007