uranium starts to rebound
A couple of years ago there was a disaster at a Japanese nuclear plant.At that time the spot price of uranium was around $70 to $72 per pound.After the accident the spot price fell to below $45 per pound.It has inched it's way up to around $55 per pound.But last week an American company called UR-Energy sold 90,000 pounds of processed uranium for an average price of $62.92 per pound.This suggests that some of the processed uranium sold for almost $65 a pound.This is a small amount of uranium and is paltry relative to some of the large utility contracts that may be for several million pounds and stretch over several years.In addition, this is an American contract and would likely go for less in Japan or India or China.But it is the beginning of a trend for uranium back towards the old long term price of $70 a pound .
The company that sold the uranium,Ur-Energy has rebounded in price from $1.00 to $1.10 a share to the $1.50 area.Another large uranium company called Denison Mines has moved up from the $1.15 area to around $1.35 per share.Another company that has an uranium mill called Energy Fuels also has a processing plant in White Mesa.It is the largest plant and the largest producer of uranium in America.Energy Fuels has moved up from the $5.75 per share area to $6.05;it has also renewed it's relationship with a South Korea utility.It will be interesting to see if a large multiyear contract here goes for $61 to $62 a pound of uranium.
The future for UR
Ur-Energy's plant is in Lost Creek ,Wyoming and it has a capacity of 2 million pounds per year and it has 1 million pounds ready to be processed.This is in addition to acquiring a new property with a resource of 15 million pounds.Ur-Energy could easily hit $1.75 a share by the first quarter and it's competitor Energy Fuels(also a processor) could hit $7.50 a share by the second quarter.
The company that sold the uranium,Ur-Energy has rebounded in price from $1.00 to $1.10 a share to the $1.50 area.Another large uranium company called Denison Mines has moved up from the $1.15 area to around $1.35 per share.Another company that has an uranium mill called Energy Fuels also has a processing plant in White Mesa.It is the largest plant and the largest producer of uranium in America.Energy Fuels has moved up from the $5.75 per share area to $6.05;it has also renewed it's relationship with a South Korea utility.It will be interesting to see if a large multiyear contract here goes for $61 to $62 a pound of uranium.
Ur-Energy's plant is in Lost Creek ,Wyoming and it has a capacity of 2 million pounds per year and it has 1 million pounds ready to be processed.This is in addition to acquiring a new property with a resource of 15 million pounds.Ur-Energy could easily hit $1.75 a share by the first quarter and it's competitor Energy Fuels(also a processor) could hit $7.50 a share by the second quarter.
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