The story of uranium this week is about one forced seller and a tumbling spot price.
Citi is positive on the uranium sector and following a review has initiated coverage on both ERA and Paladin with Buy ratings.
Uranium producer Energy Resources of Australia had a tough start to 2007 but came home much stronger and upward revisions to earnings estimates has a number of brokers rating the shares as a Buy.
UxC has followed TradeTech and lowered its weekly price indicator for U3O8 to US$90 per pound.
CommSec gives its view on a wide range of issues that will dominate the Australian landscape in 2008.
The latest forecast from ABARE suggests commodity earnings will grow by only 1% in FY08.
Industry consultant UxC joined colleague TradeTech by setting its weekly spot price indicator at US$93/lb this week.
Paladin has been forced to buy in spot market uranium to cover contract shortfalls – a costly business.
Industry consultant TradeTech has left its weekly price benchmark unchanged for the third week in a row.
Spot uranium took a breather last week, industry consultant TradeTech reports.