media coverage from minesite, page-4

A great summation of the situation marenica is in. It should be pointed out that Uramin shareholders made so much money because U308 prices at the time of the Trekkopje sale had spiked massively. Any increase in the U308 spot price will put pressure on acquisitors to make their move before companies like Marenica get too expensive.

I understand that the spot price has come down so much because Kazakhstan miners have been selling on the spot market. They failed to meet their delivery obligations some time ago and were forced on to the spot market......it seems they cannot continue to sell ore so cheaply. check out the following link and here is an interesting extract

'Although Kazahkstan boosted its uranium output by 59 per cent in 2009 to 35,000t and more recently saw a 63 per cent increase in its 1Q10 production, some of its largest mines are approaching the end of their working lives and newer projects have higher capital and operating costs. In addition, Macquarie Commodities Research in a report issued in February indicated that it expects Kazakhstans 2010 production target of ~18,000tpa up from the ~13,600t seen in 2009, to be rescinded in the next six months. The consultancy is also expecting to see further project delays and cancellations resulting in market tightening by 2011/2012. Kazahstans own data allegedly indicates that the countrys 2009 output rate might not be sustainable at around US$40.5/lb."

http://www.ifandp.com/article/003819.html


it is clear that the Uranium price is at/near the bottom of a price cycle. There is going to be a massive increase in Uranium use over the next 30 years. The number of companies and countries trying to secure reliable sources from a mixture of geographical locations has been well documented.

If we can get any kind of II besides AREVA on to the register we could end up in a lovely bidding war. I can't see AEVA lettting MEY slip through their fingers. It seems such an obvious add on to their Trekkopje mine. They have water and power only 30km away!!!!! Just think about the CAPEX and OPEX savings . They also have developed some expertise at extracting Uranium from low grade bulk tonnage deposits. One way or another at some stage over the next 3 years or so Areva will buy Marenica. It is up to the management to keep on increasing the resource, sort out the metallurgy and gain some fresh II on the register. Whether we get taken out for 25c in the short term or 75c a couple of years down the line.........it is all profit!!

So our resource is expected to grow by 100 to 150 million LBS........that is huge. And will have excellent repercussions on CAPEX/OPEX. We have just got to let the management get on with moving the project forward and remember the bigger picture. We have a huge and growing resource in a very mining friendly part of the world and the world needs more and more uranium