Analysts at Deutsche Bank expect the uranium spot price to strengthen during this quarter, which bodes well for both Paladin and ERA.
The price of uranium plumbed highs and lows in 2008 and while the outlook for 2009 is for stable prices, there are no safe bets in this market.
Spot uranium fell in price during the week past as sellers felt they needed to offer some discount.
With no transactions recorded, the uranium spot price is unchanged from US$54/lb leading into Christmas.
November was a good month for uranium spot prices, which rose more than 20% and the demand picture remains solid.
Energy Resources of Australia is returning better than expected exploration results from its Ranger 3 Deeps project and this offers significant valuation upside according to brokers.
The spot uranium price jumped another US$5 this week.
Production problems, increasing demand and the prospect of a new uranium fund sees the uranium spot price rise for the second straight week.
The price of a pound of yellow cake continues to drop.
Even uranium prices are being dragged into the turmoil that is currently defining financial markets.