eureka report

Actually guys, have you read this..........


Energy hunger will lift uranium
By Tim Treadgold
PORTFOLIO POINT: Increasing energy demand, particularly from China, will push up uranium prices. It’s time to reconsider a handful of stocks.

Apart from investing in fringe financiers there was one other way to lose money very quickly last
year: uranium exploration stocks. It will take a long time for second-tier finance companies to
recover, but there are already signs that uranium is the resource category most likely to fire in
2008.
The prices of the “energy resources” coal and oil offer a clue as to why uranium will stage a
comeback. Both are at near-record levels as buyers scramble for supplies. Last week, without
anyone seeming to notice, most of Australia’s specialist coal stocks hit 12-month share price highs.
A second clue is evidence of investment fund activity, such as that of the Canadian-based Uranium
Participation Corporation (UPC), which last month waded into the market with an order to buy
900,000 pounds of uranium because it believes the price is “at, or near, the bottom”. And that's
from James Anderson, chief financial officer of UPC, which is already sitting on a stockpile of 4.5
million pounds of uranium managed by a major uranium producer, Denison Mines.
Not everyone agrees. In the uranium market there are still as many bears as there are bulls.
Deutsche Bank is one of the bears, last week talking down an immediate uranium revival – though
even a report from such a well-regarded investment house contained the seeds of optimism.
Deutsche Bank says it will not be “until the final quarter of 2008” that the spot uranium price climbs
back over $US100 a pound.
While pessimists seized on that forecast as evidence of a delayed comeback for uranium, optimists
might as easily have pointed out that the $US100 price tip represents a 37% increase on the
current spot market price of $US73 – and any commodity looking at a possible price rise of more
than a third in less than nine months cannot be ignored.
That’s why it’s time to dust of your uranium files and start sifting through the 250 listed stocks,
discarding about 240 of them as the boom-time rubbish they always were, and focus on the handful
of companies with quality assets, in jurisdictions that actually allow uranium mining.
In Australia, that means looking at companies active in the Northern Territory or South Australia, or
those with exposure to stable overseas countries such as the US, Canada, or a few southern
African states such as Namibia, Malawi, or Zambia.
Do that, and you finish up with a list headed by:
Energy Resources of Australia, the local market leader set to benefit from an extended life at its
Ranger mine in the NT and the higher uranium price.
Paladin Resources, which is steadily increasing production at its Langer Heinrich mine in Namibia
and building a second mine in Malawi.
Equinox Minerals, which has started with copper production at its Lumwana mine in Zambia and
is moving on to a separate uranium pit at the same location.
Extract Resources, a longer shot but a company that has reported a string of excellent exploration
hits in Namibia, including the latest adjacent to Rio Tinto’s big Rossing mine.
Energy hunger will lift uranium
By Tim Treadgold
PORTFOLIO POINT: Increasing energy demand, particularly from China, will
push up uranium prices. It’s time to reconsider a handful of stocks.
Energy hunger will lift uranium - Eureka Report Page 1 of 3
http://


:) With love from Harlee