***** uranium *****

Investors feast on yellowcake


Jesse Riseborough


Tuesday, September 20, 2005
ANY uranium bears have been put to the sword in recent days, with hunger for the yellowcake seeing strong rises posted by a host of companies across the sector.

Heading the pack, in what would have to be one of the more remarkable floats of recent years, is Jindalee Resources spin-off Energy Metals. The company listed on the ASX on September 9 after raising $3 million in its IPO and issuing shares at 25c on the back of interest in its NT uranium project.

The company listed at a 400% premium to its offer price at $1 before closing the day at a lazy 87c. Over the last three trading days Energy Metals shares have put on 57.5c and closed up 20.5c today [16%] at $1.485c. The stock's intra-day high was $1.60.

The other significant mover of the past week is the golden child of the Australian uranium sector, Paladin Resources. With the company now confident of increasing the 15-year mine life at its flagship Langer Heinrich project, investors have piled back in, sending the stock to all-time highs.

Shares in Paladin have put on more than 55c in past five trading days and closed up 11.7% today to $2.48.

Havilah Resources spin-off Curnamona Energy has also made a blazing start to the week putting on 14c over the past two days. The stock closed up 6c [7.8%] at 83c today.

Compass Resources have also put on 20c over the past two trading days following news it was raising more than $12 million to fund exploration at its tenements in the Northern Territory. Shares in the stock closed up 11.5c [7.5%] at $1.64 today.

Another new float, Korab Resources, has also made some healthy gains over the past week after listing on the ASX earlier this month. Shares in the company have put on 7c over the past three trading days, moving from 30c to close at 37c today.

Other movers in the uranium sector today included; Marathon Resources up 5c [10.2%] to 54c; Hindmarsh Resources up 5c [10.6%] to 52c; Summit Resources up 9c [11.5%] to 87.5c and Redport up 0.5c [8.3%] to 6.5c.

The uranium spot price firmed again last week and is now at $US30.75/pound.