Commodities | Jan 22 2007
By Rudi Filapek-Vandyck
For the fifth week in a row the spot U3O8 price has remained stuck at US$72/lb with industry insiders reporting buyers find it increasingly difficult to sign off on any deals as sellers prove to be increasingly unwilling to depart from their uranium oxide ahead of the Cameco market update on February 6 and 7.
The world’s number one producer of uranium, which is also the responsible operator of the Cigar Lake project, is scheduled to update the market on its December quarter performance with a media release on February 6 followed by a conference call the day after. Chances are high the company’s financial performance will be of secondary relevance only with market watchers and industry participants having turned increasingly nervous about developments at the flooded Cigar Lake project.
Current market speculation is that Cameco is downplaying the problems it has at Cigar Lake. Some expert sources within the industry believe the project could be lost for ever, others believe the company still hasn’t been able to stop the flooding. Any announcement in February is bound to be closely scrutinised for any additional insights in the matter as Cigar Lake represents circa 10% of projected additional supply to an already tighter than expected uranium market.
Our colleagues at Stockinterview.com report industry consultant TradeTech has decided to make available a complimentary issue of the weekly sector publication Nuclear Market Review. The initiative is for a limited time only.
To download your free copy of the weekly magazine in pdf format go to
http://www.stockinterview.com/News/01202007/Uranium-Price-Stall.html (link in fourth paragraph) or go directly to www.uranium.info and follow the download instructions.