This may explain something for you if you havent already read it....i personally beleive it is definitely going places in med - short term and this movement is only a retrace to higher 20's prices. Currently, the daytraders are testing the 23cent line for us (which it will trip over tomorrow and run past i also think)
See this from today :
"China makes power play for uraniumBARRY FITZGERALD AND MATHEW MURPHY
September 9, 2009
**(CLICK LINK AT BOTTOM FOR A SHORT VIDEO, WHICH GOES IN THIS SPACE)**
Replay video China still hungry for takeovers China still on the hunt for our resource companies. Ian Verrender reports.
Video feedback Video settings A BEIJING directive to its mushrooming nuclear power industry to step up the acquisition of strategic uranium supplies has led to an agreed $85 million takeover bid for Energy Metals, the main partner in the Northern Territory Bigrlyi uranium deposit.
The state-owned China Guangdong Nuclear Power Holding Co (CNGNPC) is bidding $1.02 a share cash for up to 70 per cent of Energy Metals and will also underwrite an $11.7 million rights issue at 90¢ a share, which could end up delivering it 73 per cent of the company.
The move is the biggest yet by China into the local uranium industry and follows the agreement that allows uranium exports from Australia to China for the first time. It is expected to be the first of many as China sets about securing uranium supplies for the planned growth of its nuclear power industry.
Ziggy Switkowski, chairman of the Australian Nuclear Science and Technology Organisation, tipped the investment to be ''just the first of many'' as China and the world eyes Australia's uranium to meet its energy needs.
Dr Switkowski, speaking after a business luncheon in Melbourne, said the growth in the global nuclear industry would focus attention on Australia's uranium deposits.
''There will be demand for uranium and Australia is seen to be the highest-quality provider in the world,'' he said.
''We comply to the strictest protocols and we are a transparent regime … it is not a surprise that nuclear countries are going to want equity in our mines and in our operations.''
China is building 13 nuclear reactors and has been the biggest buyer of uranium on spot markets in readiness for the commissioning of the power plants.
CNGNPC owns four nuclear power plants and brands itself as a leading green (solar and wind power) and clean (nuclear) power producer in a country where pollution is a huge problem.
The bid for Energy Metals is at a 19 per cent premium to its previous closing price and is a friendly one. It has the support of 40 per cent shareholder, Jindalee Resources, in the absence of a higher bid. The only obvious counter-bidder is Perth-based African uranium producer Paladin Energy.
Paladin owns 42.06 per cent of the Bigrlyi deposit, making it a junior partner to Energy Metals with 53.74 per cent. Southern Cross Exploration owns the remaining 4.2 per cent. Success with the Energy Metals bid would deliver the Chinese an effective 38 per cent of Bigrlyi, one of Australia's biggest undeveloped uranium deposits at more than 13,000 tonnes or uranium oxide.
That the bid is a proportional one is also in keeping with another directive by Beijing to its resources industry: when seeking to secure resources in Australia, it is best to do so in a co-operative joint venture basis, something the Japanese did in the 1960s.
The bid is subject to approval from the Chinese and Australian governments. Because Australia has a host of undeveloped uranium deposits, Canberra could welcome the interest of the Chinese.
Australia is also home to the world's biggest uranium deposit, BHP Billiton's Olympic Dam mine in South Australia. Analysts continue to suspect that BHP is planning to cut a deal with China to sell it uranium-bearing copper concentrates from a planned $20 billion expansion.
Meanwhile, the Chinese push into the junior iron ore sector continues, despite tension over the July 5 arrest of Rio Tinto's iron ore marketing team in Shanghai when the Chinese failed to get their desired price cut.
China Railway Materials (CRM) is to inject $27.2 million into United Minerals Corp in return for 11.38 per cent equity in the developer of the proposed Pilbara railway iron ore project.
State-owned CRM is also taking a 12 per cent stake in FerrAus, another Pilbara iron ore developer for $12.6 million. Elsewhere in the Pilbara, Atlas Iron is making a $65 million scrip-only takeover bid for Warwick Resources.
(20min delay)