I hope you are not trying to get Hanlong Mining to pay us $2 per share for the takeover. Looking at the situation, I don't think its gonna happen.
Please do the right thing, ACCEPT Hanlong's offer.
------------------------------------------------------ Uranium spot prices to fall, says RCR
By: Esmarie Swanepoel 6th September 2011
PERTH (miningweekly.com) − The uranium spot price was expected to decline over the next three to six months, however, the long-term outlook for yellowcake remained positive, equity research firm Resource Capital Research (RCR) said on Tuesday.
?The sector has continued to come under selling pressure over the past few months, not only on concerns of utility surplus dispositions, but broader equity market concerns as well, in particular the economic outlook for the US and sovereign debt issues in Europe,? said RCR MD John Wilson.
?We anticipate the extent of utility dispositions will become evident and fully priced into the market over the next three to six months, and as a result in buying opportunities as investors shift focus to longer-term prospective sector fundamentals,? he added.
RCR predicted that the spot price for uranium could trade as low as $45.95/lb.
The spot price at $48.85/lb was already at levels seen immediately after the March nuclear incident at Fukushima in Japan, when the spot uranium prices plummeted to $49/lb, after trading at around $67.75/lb prior to March 11.
Wilson noted that the long-term contract uranium price has remained relatively stable, and was currently at around $64.50/lb, down from the $68/lb at the end of May, and the $73/lb at the end of February.
He said that despite the ongoing short-term market impacts from Fukushima, the long-term uranium market fundamentals were considered sound with increasing demand for new nuclear power reactors, especially from China, US, Russia, Ukraine and India.
While Germany has announced it will close all 17 of its nuclear power reactors by 2022, with seven to remain closed with effect from the March 2011 moratorium, several countries have publically stated their strong continued commitment to nuclear energy, including the US.
Wilson said that over 84 new nuclear power reactors were expected to be commissioned globally by 2017, with 63 currently under construction. There are 496 new reactors planned or proposed as at September 1.
The impact of Fukushima on the contract price is expected to be temporary, with the price remaining around the $60/lb to 75/lb mark. This level should support development decisions at a number of advanced uranium development projects, particularly in Namibia, including the large-scale Husab project from ASX-listed Extract Resources.
In the past month, the uranium mining majors have had consistently negative share price performance, compounding declines of the past three, six and nine months.
RCR noted that Cameco was down by a further 10%, after falling around 17% during the past three months, Denison Mines was down 23%, Uranium One was down 23%, Energy Resources of Australia was down 13% and Paladin was down by 23%.
The Australian majors have significantly underperformed their Canadian peers over the past 12 months, primarily owing to operational problems at ERA?s Ranger project, and ramp-up delays and higher cost outlook, particularly at Paladin?s Kayelekera operation.
The Merrill Lynch Uranium Equity Index is down 19% over the past month, down 27% over three months and down 23% over the past 12 months. RCR stated that the sector had faced near-term uranium price uncertainty since the March nuclear crisis in Japan, as well as broader systemic equity market concerns over slow US economic activity and ongoing sovereign debt issues in the advanced economies.
The sector outlook was expected to improve and buying opportunities emerge late in the fourth quarter of this year, and yearly in 2012 as the anticipated surplus utility disposals materialise and were priced into the market, and investors refocus on mid- to long-term sector fundamentals.
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