May 19 (Bloomberg) -- China’s stocks fell for the first time in three days, led by property developers and power producers, on concern the central bank will boost borrowing costs and higher energy costs will hurt corporate earnings. Poly Real Estate
Uranium Mining News
Hathor Exploration has released a new resource estimate that effectively doubles its uranium deposit in Saskatchewan's Athabasca Basin. The company said Tuesday it has identified over 30 million pounds of uranium oxide (inferred) at the East Zone of the property. That works out to 118,000 tonnes of U308 graded at 11.58%. According to the technical report, exploration consisted of a 21-hole drilling program, with about 368 sample intervals assayed for U308 and other metals, including arsenic, cobalt, copper, molybdenum, nickel and selenium. Image of mineralization in drill core, Far East Zone, by Hathor Exploration Limited
As the chart below demonstrates commodity prices are driven by different factors. The precious metals prices have been the hyperbolic driver of headline commodities news relative to the broader based commodities index and oil. The latter two are more geared to industrial use as gold’s commercial use is limited. The chart highlights the divergence in the components of the commodities index. iShares S&P GSCI Commodity-Indexed Trust (GSG) tracks 24 different commodities including energy (67%), industrial metals (16%), livestock (7%) and precious metals (3%).
Advances in energy and agriculture are creating demand for previously ignored metals such as scandium, tellurium and indium. In this exclusive interview with The Energy Report, Mining Analyst John Kaiser, editor of Kaiser Research Online, explains the science that could exponentially increase the value of overlooked stocks.
While China continues to make asset driven economic decisions and now looks like a traction control experiment where the economy is like a car that is driving on ice that doesn't yet know it, QE2 ignited the bunsen burner for commodity price speculation. Last I checked, Ben Bernanke has decided to continue on with QE2 but has decided that QE3 is probably a bad idea because the true positive impact of additional money coming into the economy would be more than offset by inflation. In my opinion he's making the right call, but this call is likely going to put downward pressure on commodities and other assets.
QE, of course, only happens when interest rates hit the zero bound, so it’s impossible to disentangle the effects of QE from the effects of G3 interest rates all coming down to 1% or lower. But the effect of all these investment flows is clear: if you look at commodities as an asset class, total commodity assets under management have risen from just over $150 billion at the end of 2008 to over $400 billion today.
In results released on Friday, Australia’s Paladin Energy showed a 47% increase in production from its Namibian and Malawian operations and record revenues of $208.7m on the back of a 31% increase in sales volumes for the nine months to March. The company said despite the concerns about the nuclear energy market following the tsunami damage to Japan’s Fukushima plant, it believes supply and demand imbalances will only widen in future as more plants, such as the 25 under construction in China, come on stream. Paladin is on an aggressive growth drive. Stage 3 of the expansion of its Langer Heinrich mine that would bring capacity to 5.2m lb is 92% complete and in February 2011 the company announced that it completed its acquisition of the uranium assets of Aurora Energy in Labrador, Canada for C$260.8m.
Uranium Energy Corp (NYSE-AMEX: UEC) is pleased to announce that, effective May 11, 2011, the Company has entered into a Share Exchange Agreement with a Nevada company hereby the Company is acquiring a Paraguayan company which holds a 100% legal and beneficial interest in two unencumbered prospecting permits covering 247,000 acres located in the area of Coronel Oviedo, Paraguay, subject to a gross overriding royalty. The total purchase price for the Paraguayan company is the issuance of 225,000 restricted common shares in the capital of the Company. Image by Uranium Energy Corp.
Uranium Resources does not expect to return to production in Texas in 2011 given current uranium pricing, unfavourable sales contracts and less than lucrative resources that are available. Uranium Resources made the statement in its 2011 first quarter update on Thursday. Instead the company is focused on reclamation activities in Texas since its two remaining operating wellfields were fully depleted in June 2009.
Toronto- and Johannesburg-listed Uranium One, which boasts the lowest production costs in its industry, has reported record quarterly revenue, of USD 101.9m, for first-quarter 2011, based on sales of 1.7m pounds of uranium at average sales prices of USD 61/lb, and total cash costs of just USD 14/lb.
Uranium miner Paladin Energy believes it will not be affected by planned changes in Namibia's policy on ownership of strategic minerals after the government said existing licenses would not be affected. "Paladin has welcomed this clarification, which removes any uncertainty over its operations in Namibia," the company said in a statement to the Australian Securities Exchange.
The headlines on Japan are still uninspiring: “Japan sinking: Coast lowered by March quake, cities face daily floods at high tide” is what the Globe and Mail is going with on Monday morning. However, one analyst believes that the country’s Fukushima nuclear crisis and the global nuclear power industry will gradually stabilize, and that should be good news for patient investors who want to scoop up cheap uranium stocks right now. Greg Barnes, an analyst at TD Newcrest, raised his recommendation on Cameco Corp. (CCJ) to “buy” from “hold,” even as he trimmed his 12-month price target on the stock to $37 from $42
A-Cap Resources has reported a 65 percent increase in uranium resources, from 158 million to 261 million pounds, at its Letlhakane project in Botswana, the company stated this week. The updated JORC-compliant resource estimate pegs the deposit at 780 million tonnes, at 152 ppm of uranium oxide, leaving 261 million pounds of U308 at 100 ppm cutoff. The indicated resource stands at 221 million tonnes at 153 ppm, for 74.7 million pounds of U308, which is a 49% increase over the last resource update in 2009.
Cameco announced Q1 results on Friday. Net earnings came in at $91 million compared to $143 million a year ago. The company said the decline was due to lower earnings at all its electricity, uranium and fuel services businesses and an increase in average cost of product sold. The company said production volumes were 23% lower this quarter due to lower production at McArthur River/Key Lake.
Extract Resources said on Monday it was confident that the Namibian government's proposed policy changes on strategic minerals will not affect its Husab uranium project license. The Namibian government is expected to hold a news conference this week to clarify plans to assign almost all mining and exploration rights to a state-owned company.
Paladin Energy Ltd-Mark Chalmers takes on role of executive general manager-production, on departure of Wyatt Buck
Paladin Energy Ltd. (TSX:PDN)(ASX:PDN) ("Paladin" or the "Company") advises that Wyatt Buck, Executive General Manager – Production will be leaving Paladin in May. He has decided to change direction and depart the uranium sector, taking a senior role with a company focussed on other commodities. We wish Wyatt all the best in his new venture and, on behalf of myself, management and the Board, sincerely thank him for his contribution and dedication over the past 5 years during a time of great growth for the Company.
Brazilian Gold Corporation (TSX VENTURE:BGC) ("Brazilian Gold" or the "Company") is pleased to announce the closing of its previously announced bought deal private placement, including the full exercise of the $3,003,000 Underwriters' option (the "Offering"). Under the Offering, the Company issued an aggregate of 16,445,000 common shares (the "Common Shares") of the Company at a price of $1.40 per Common Share for gross proceeds of $23,023,000. The Company intends to use the net proceeds of the Offering to advance the Company's gold projects in Northern Brazil, and for general corporate purposes.
Johannesburg- and Australia-listed Gold One on Thursday announced a USD 250m friendly bid for 100% of Rand Uranium, formed in 2008 by the spin out from Harmony Gold of three Cooke underground mines and the Cooke surface operation, veteran assets west of Johannesburg. In line with other uranium resources on the Witwatersrand, gold is also mixed in with the uranium ores, dumps and tailings.
Doug Casey sat for an interview with a site called The Energy Report that was rerun on Seeking Alpha. The interview covered a lot of ground, and I wanted to hit a couple of the […]
We feel that some commodity prices are getting overextended and very close to their tipping pint. Far from an ultimate top but ready for a healthy correction. Crude traded to its highest level in two […]
Greg Hall, managing director of Toro Energy Ltd (ASX: TOE), said the main nuclear power countries are continuing their new build programmes for nuclear power while adapting to lessons learned from the incident. The uranium spot price dropped significantly after the incident but had, by the end of the March quarter, returned to the December 2010 average of $US62.50 per lb of U308.
Coal is considered the dirtiest of all fossil fuels due to the emissions of hazardous pollutants when burned. But we are at a point today where there is a scarcity of energy around the world, oil and gas prices are constantly rising and reaching new highs and energy consumption is showing no signs of slowing down.
Nothing new to report from Uncle Ben and his cronies but at least there was more talk of inflation with rising commodity prices. The $2.50 range carried on in Crude again today as traders try […]
Tournigan Energy Ltd. (TVC: TSX-V; TGP: Frankfurt) has updated its resource estimate for the Kuriskova uranium deposit in Slovakia. This NI 43-101 compliant updated estimate increases the amount of uranium contained in the Indicated Resource by 39% to 28.5 million pounds of U3O8 and increases the overall size of the deposit. Tetra Tech, Inc., the firm that is conducting the ongoing Prefeasibility Study on Kuriskova, has reviewed, audited and approved the updated resource estimate.
Hathor Exploration has acquired Terra Ventures in an all-stock deal valued at approximately $24 million. Under the deal announced Monday, Terra shareholders will receive 20 cents of a Hathor common share for each common share held, which represents a 16% premium on Terra's April 15 closing share price of 33 cents.