notice, page-56

....and of course the U price continues to rise.


"US consultancy TradeTech reported last week that the recent high prices were attracting increasing interest from investors and speculators, with hedge funds venturing back into the market.

"While the level of spot market demand is primarily discretionary, it is exceptionally high, with buyers including utilities, traders, and producers," said TradeTech president Treva Klingbiel.

Magrum pointed to the recent long-term supply contract the world's largest nuclear fuel miner, Areva, concluded with Chinese utilities. The price worked out to $79/lb.

"I think that's where the spot price will move up to, I just can't tell you exactly when," he said.

On Monday, Vancouver-based Uranium One CEO Jean Nortier said Chinese demand would continue to drive prices higher.

Australia-based Paladin, which owns the Langer Heinrich mine in Namibia, expressed similar sentiments, with CEO John Borshoff saying China was "nowhere near their target of acquiring in the vicinity of 45-million to 50-million pounds per annum by 2020".

Investors had largely lost interest in the uranium sector after the price collapsed from its $137/lb 2007 highs, but Magrum said things had improved significantly.

"Uranium is one of the hotter commodities right now, maybe even better than gold."