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Market:	.
Sector:	General Mining
Epic:	URANIUM
News:	Latest news
Web Site:	Uranium
Other Articles:	06-01-2009

Uranium - big gains ahead for big yellow?

by Andrew McCrea

As commodity prices fell dramatically in 2008, one commodity that defied the trend was uranium.  Uranium has rallied to a five month high.   Ongoing demand for nuclear power stations in China and India, as well as lack of new supply of uranium have created demand for uranium and uranium development companies and producers.
 
Governments around the world are embracing nuclear power as part of their efforts to lower greenhouse emissions.

The uranium spot price has increased more than 30 per cent to $US53 per pound from a low of $US40 per pound in November 2008. This has seen listed uranium stocks outperform all other sectors of several stock exchanges in the December quarter.

While the benchmark All Ordinaries index fell by more than 400 points or 13 per cent during the quarter, Energy Resources of Australia (ASX:ERA) jumped 90 per cent to $19.69, since the middle of October.  Bannerman Resources (ASX: BMN/TSX:BAN) has rocketed 305 per cent to 85 cents, Alliance Resources (ASX:AGS) has risen 67 per cent to 50 cents. 

Marathon Resources (ASX:MTN) rose 66 per cent to 37 cents, Greenland Minerals & Energy (ASX:GGG) increased 33 per cent to 24 cents, Deep Yellow (ASX:DYL) up 40 per cent to 14 cents, Berkeley Resources (ASX:BKY) was higher by 127 per cent to 33 cents and Wildhorse Energy (ASX:WHE) was up 100 per cent to 10 cents.  Forte Energy (AIM/ASX: FTE) has climbed around 20% in recent weeks too.

Australian uranium companies have mirrored share price movements of North American uranium companies.  Cameco Corporation (NYSE:CCJ) has rebounded up 64 per cent to $US19.35. Uranium One (TSX:UUU) has rocketed up 152 per cent to $US1.89. 

Toronto Venture companies have kept up the pace too. Xemplar Energy (TSX-V:XE) moved 30% yesterday, after reiterating its drilling plans in Namibia for 2009.  Fission Energy (TSX-V: FIS) has climbed from a recent low of 8.5 cents to 25 cents, while Strathmore Minerals (TSX-V:STM) has jumped from 16 cents to 44 cents.

In London, Kalahari Minerals (AIM: KAH), which has a 39% interest in ASX & TSX listed Extract Resources, has moved from 32 pence to 48 pence in the past 8 weeks. 

Local uranium hopeful Black Range (ASX:BLR) has climbed over 258 per cent since November after Canadian uranium producer Uranium One announced it would finance the development of Black Range's Taylor Ranch uranium project in the US.

Uranium One last week indicated it plans to develop the Honeymoon uranium mine in South Australia through a joint venture with Japan's Mitsui Corporation.

It would appear that uranium explorers and developers' share prices can be expected to continue out-perform other resources sectors in early 2009 as developing countries and more and more developed countries embrace nuclear power to reduce carbon footprints.

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