Is it finally time to look at uranium stocks? In early August, the bulls were drawing up plans for a march on US$200. Since then, the uranium price has fallen over 35%, which also happens to be a standard technical correction in a long-term bull market. Hmmn.
The correction in the market took all the wind out of the sails of uranium juniors. But we think that’s a good thing. Apart from some speculative forecasts on increased production in Kazakhstan, the fundamentals for uranium supply and demand are still bullish. In the juniors, it’s a question of asset quality.
We’re taking a closer look in the upcoming issue of Outstanding Investments at Aussie uranium juniors with quality in assets in States that do not require a change in political leadership for new mining to take place. Watch this space.
Dan Denning
The Daily Reckoning Australia
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Comment by dubious pete in melbourne on 28 August 2007:
hint: buy every junior miner you can. stick $1000 in each of them and stick the scrip in the draw and forget about it. in 30 years one of them will be worth a million bucks.
look into SAPEX, and everything in Sth Australia. IF they cazn get energy to them then they can mine it, and we are cooking. all we need is a technological breakthrough which can enable them to get the power to mine the stuff. might not be as far as we imagine. then we need a train track to get the stuff south to port lincoln. then sth australia becomes the richest place on earth.