Commodities | Dec 20 2006
By Rudi Filapek-Vandyck
Uranium market enthusiasts and investors are likely to take comfort from the fact that TradeTech’s spot price jump of more than 10% to US$72/lb on Friday has now been confirmed by Ux Consulting, who similar to TradeTech, publishes a weekly U3O8 spot price.
Ux Consulting has come with the same assessment as TradeTech during the past week, putting the updated spot price at US$72/lb, up US$6.50 from the previous week.
The news has not escaped commodity analysts at ABN Amro who report this morning they “believe a change in policy would lead to a re-rating of the Australian uranium explorers and potentially to further consolidation of the sector”. Investors willing to take a punt should focus on explorers with advanced projects as they will be in the best position to take benefit from a potential change in policy, the broker believes.
FNArena News received verbal confirmation this week that the top of the Labor party is confident the party will change its policy on uranium production and exports in April. This increases the odds for a feeding frenzy and renewed enthusiasm within the local uranium exploration community from the second quarter of 2007 onwards.
As pointed out by ABN Amro, the current Labor Environment Minister, Peter Garrett, opposes the change, but he has already said he will abide by whatever the national conference decides.
Paladin Resources (PDN) shares continued their bull run this morning, adding another 19c (2.46%) to $7.91. Shares of Energy Resources of Australia (ERA) were 24c higher at $18.96 at around 10.35am.