Why is it any more crazy than what is happening across all of the uranium stocks? The VMY SP has been responding in the same way as the other U3O8 companies and so nothing to do with licence approval, if you ask me.
Even a jerk company like MHC with a uranium resource in the middle of a state nature reserve in WA went up from 1.2c to 1.7c because it had some uranium resource (even though untouchable under the present WA Government and likely to remain so).
The U3O8 company prices are responding to the lift in spot price, which itself is responding to increased buying as a result of the recently established U3O8 ETF established by Sprott Resources. If someone invests in the Sprott fund, then they need to buy U3O8 and have been doing so. As the spot price responds, more investors join the Sprott fund and so the more they buy. This is a deliberate feedback loop by Sprott, who decided that the U3O8 market was ready for intervention like this because the nuclear power producers were reaching the point of needing to establish new supply contracts after years of drawing on their stockpiles and buying cheap surplus from Japan and Germany sell-downs, plus enriched material from the decommissioning of nuclear bombs (principally by Russia).
I have just read a report that says that Sprott has bought about 30% of world annual production so far.
VMY Price at posting:
24.0¢ Sentiment: None Disclosure: Held
