sellers ... be careful, page-4

Bit of press from the Melbourne Herald Sun yesterday. BMN not specifically mentioned but plenty of positives for uranium.

Uranium price up with global nuclear

George Lekakis
January 03, 2009 12:00am
FOREIGN investors are driving up the value of Australian uranium stocks amid increased world demand for nuclear power.

As spot prices of dirty greenhouse fuels such as oil and coal fell dramatically in December, uranium prices rallied to six-month highs.

The rollout of fourth generation nuclear power stations in China, India and Europe has placed a floor under spot and long term contract prices.

Governments around the world are embracing nuclear power as part of their efforts to lower greenhouse emissions.

After sliding to a three-year low of around $US40 a pound in early November, the uranium spot price has soared more than 30 per cent to $US53 a pound.

The recovery has ignited locally listed uranium stocks which collectively outperformed all other sectors of the ASX in the December quarter.

While the benchmark All Ordinaries index fell by more than 400 points or 13 per cent during the quarter, leading uranium companies such as Paladin and Energy Resources of Australia rallied strongly.

ERA, which closed at $19.69 yesterday, has risen 90 per cent since the middle of October.

Paladin Resources, which last traded at $2.52, is up 40 per cent since October 17.

Emerging uranium players such as Marathon Resources and Black Range Minerals have also surged.

Scrip in Perth-based Black Range soared 40 per cent yesterday after it announced that Canadian mining giant Uranium One would help finance the development of its Taylor Ranch project in the US.

The investor rush to uranium is even more pronounced in North America where big miners such as Uranium One have more than doubled in value in the past three months.

Uranium One is preparing to ramp up its Australian operations after last week finalising plans to develop the Honeymoon uranium mine in South Australia through a joint venture with Japan's Mitsui Corporation.

Leading analysts believe that uranium stocks are poised to outperform other resources companies in the first half of this year.
A recent report published by RBC Capital Markets in North America asserts that big uranium producers such as Cameco and Uranium One will continue to benefit from rising spot prices.

The recovery in uranium prices is likely to increase pressure on the Queensland Government to remove its ban on uranium mining in the state.

Queensland boasts some of Australia's most valuable uranium resources including the Valhalla North Project owned by Fusion Resources.