Commodities | May 06 2008
This story features PALADIN ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: PDN
By Rudi Filapek-Vandyck
Is this bottom of the price correction for spot uranium? Listed uranium stocks such as Paladin ((PDN)) and Energy Resources of Australia ((ERA)) posted a solid rally on the Australian share market yesterday, only to give some of these gains back today. No doubt yesterday’s rally was once more inspired by investors taking a positive view on market developments and anticipating a bottoming of the spot uranium price.
Industry consultant TradeTech’s latest assessments suggest this time these speculations might prove to be correct with the consultant signaling sellers seem less eager to continue lowering their prices in order to conclude a deal, while buyers seem to be readying themselves for an active return into the market.
This should keep spot uranium prices from falling further, to say the least.
No new deals were recorded, not in the spot market and not in the longer term end of the market. Thus TradeTech’s weekly spot has remained at US$65/lb and its recently lowered long term price indicator at US$90/lb.
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For more info SHARE ANALYSIS: ERA - ENERGY RESOURCES OF AUSTRALIA LIMITED
For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED