uranium sector, page-5

TradeTech's take on the current uranium market;

November 13, 2009–Two external events occurred this week that have the potential for significant impact on the spot uranium market.

First, Secretary Steven Chu announced today that the US Department of Energy (DOE) found the transfer of uranium to fund accelerated cleanup activities at the Portsmouth site in Piketon, Ohio will have no adverse material impact. Under the determination, DOE will be able to transfer as much as 300 tonnes of uranium (780,000 pounds U3O8 equivalent) per quarter in calendar years 2009 and 2010 for cleanup at the Portsmouth Gaseous Diffusion Plant, so long as the total transfer during that period does not exceed 1,125 tonnes of uranium (2.9 million pounds U3O8 equivalent).

Second, on November 12, a preliminary prospectus was filed in Canada that announced the formation of a uranium investment fund. Uranium Investment Corp. hopes to raise as much as C$150 million (US$143 million) to invest in uranium products, including U3O8, UF6, conversion, and enriched uranium. The company intends to use substantially all the proceeds of the offering to acquire uranium products.

While the effects of these two events on perceptions of the uranium spot market in the longer term remain to be seen, they would suggest almost opposite scenarios. However, for today, the influence of DOE’s Secretarial Determination outweighed the news of new demand from the introduction of a new uranium fund.

Six transactions were concluded this week, and TradeTech’s Spot Price Indicator fell $2.50 to $43.50 per pound U3O8. read more

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