Uranium producers are having to keep a wary eye on the price that is moving back to $52 per lb. Many mines are set to be mothballed and new mines need a very careful analysis and most may be held back where they are soon to come on-stream.
Deep Yellow are moving to iron ore, Copper, Gold exploration that UXA are set to drill for fairly shortly. So some are now realising they need income from elsewhere to run a uranium operation.
Stocks in the resources sector with income probably arriving from 2012 mining operations are being very downgraded. One, AIM:HMB is set to deliver profits of $70m per annum from 2013 and the market cap is only $32m - so we can see why UXA's share price is so low.
UXA Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
