I have been checking to see what the medium term outlook for Uranium is and stumbled upon this article from a week ago.. This has convinced me to change my holding in UXA from a short term to at least a medium term with the company not only having great leases for discovery but also to capitalise on its pfn tool. They will have huge demand meaning they will be able to charge top dollar for the tool.
January 31, 2011?The spot price for uranium rose again in January for the eighth consecutive month. Thin spot supplies continue to exert upward pressure on the uranium spot price and TradeTech?s Exchange Value is $72.25 per pound U3O8, an increase of $10.25 from the December 31 Value and an astounding $30.00 from the same period last year. The market was especially active for January with 27 transactions reported for the month.
The shift from a buyers? market to a sellers? market that began last year gained new momentum in January. A driving force behind this increase is the ambitious nuclear program in China, along with reports in recent months from several producers that they will not meet production targets
UXA Price at posting:
5.2¢ Sentiment: LT Buy Disclosure: Held
