hungarian ministry concerned about plans, page-10

I may be too early but I bought today. RSI has reached these sort of extremes on only two other ocasions which culminated in a strong bounce back on the first ocasion (100% gains) and a smaller but still meaningful bounce on the second ocasion - lets see what happens this time.

Clearly the fundamentals have not changed yet WHE has been hammered. I would not be surprised to see 50% + gains within 6 months which is a good return in anyones language. For a company with the sort of quality projects and management to bring them into production with a market cap of less than $90mn it is a screaming buy imo. This is the cheapest quality uranium play on the market imo.

Uranium study sees flat price into early 2008
A study by Sydney-based RCR group showed a crystal ball showing a flat outlook over the next few months for the uranium price – with it hovering between $US90 per pound and $US100/lb – though it was seen as likely to be about $US125/lb by September.

Author: Ross Louthean
Posted: Friday , 14 Dec 2007

PERTH -

The quarterly study by Resource Capital Research (RCR) released today shows uranium fund sentiment and activity remain important factors in the outlook for the spot uranium price.

The funds are thought to hold about 20 million lb of U3O8, which represents a significant percentage of the annual spot market volume, of about 18 M lb to 28 M lb.

This, RCR said, leaves the spot market price highly susceptible to further fund activity.

Drivers of the recent spot market pull back have been:

• Utilities near-term demand needs covered.

• Primary producers near-term demand needs covered.

• Uranium investment funds started to sell inventory.

• Traditional slow period during the northern hemisphere summer.

The market fundamentals are considered to remain robust with strong and increasing demand for new nuclear power reactors, especially from China, the United States, Russia, Ukraine and India.

RCR said the market valuation of Australian companies with one or more uranium projects was unchanged over the past month, up 21% over the past 3 months, and up 47% over the past 12 months.

This compares with a selection of 306 Canadian companies with one or more uranium projects, down 15% over the past month, up 5% over the past 3 months, and up 14% over the past 12 months.

In the past three months the majors covered in the study have shown mixed performances: Cameco (CCO) is down 4%, Denison Mines (DML) up 10%, Uranium One (UUU) down 17%, Energy Resources of Australia (ERA) up 16% and Paladin (PDN) up 25%.

RCR said Australian juniors are making solid progress, advancing through important project milestones. Of particular note is the number of companies and projects in Namibia that have announced new resources or project studies -- including Extract Resources, Bannerman Resources, Deep Yellow and West Australian Metals. In addition, Paladin Energy is continuing to ramp up production at the Langer Heinrich uranium mine there.

The latest RCR report covers 28 global uranium exploration and development companies with a focus on companies located in Australia, Canada, US and the United Kingdom. Over 500 junior and mid cap explorers, development and production companies are identified.

Planned and proposed new nuclear power reactors worldwide continue to increase. From January to October 2007 there was an increase of 94 reactors from 222 reactors to 316 reactors -- an increase of 42% in 10 months and an increase of 107% from 153 reactors 18 months ago. This compares with 439 nuclear power reactors currently in operation.

Key events in the past three months include:

The Australian Labor Party winning the Federal election in November - concern about climate change was a high profile issue.

The European Union's Director General of Transport and Energy affirmed the strategic potential for nuclear power to help meet the EU's 2020 carbon emissions reduction targets. The EU parliament endorsed nuclear power as indispensable.

The IAEA forecasts global nuclear generation to increase to between 447GWe (+25%) and 679GWe (+93%) by 2030, up from 370GWe currently.