Wednesday, April 16, 2008

Uranium Falls to 16-Month Low on Surplus Supply, TradeTech Says (CCJ)

From Bloomberg:

Uranium fell to a 16-month low, or half the record price reached in June, after new supplies became available and exceeded demand.

Uranium-oxide concentrate for immediate delivery slipped to $69 a pound, $2 lower than a week earlier, Denver-based pricing service TradeTech LLC said in an April 11 report. Four sales totaling 900,000 pounds took place last week. Supply exceeded demand by about 50 percent, TradeTech said.

``Although recent transactions have absorbed a significant quantity of supply from the spot market, additional supply continues to emerge,'' TradeTech said....MORE

Cameco is the world's largest publicly traded uranium miner.

From Barron's, last week:

What’s the opposite of radioactive? Whatever it is, Cameco (CCJ) is it. Shares traded higher for the second straight session amid talk the Canadian uranium producer could attract the attention of a prospective buyer. China National Nuclear company hinted that it was thinking about acquisitions or partnerships, though - with a cap of about $11 billion - an acquisition might be a little rich for the Chinese government’s tastes, suggesting that a partnership could be more likely. Nothing concrete has eminated from Cameco itself.

From the Saskatoon Star-Phoenix:

Shares in Cameco Corp. rose this week on the news that China National Nuclear Corp. (CNNC) is looking to Canada for acquisitions or partnerships.

Saskatoon-based Cameco, the world's largest uranium producer, rose 4.77 per cent, or $1.74, at the end of trading Thursday, closing at $38.25 -- the company's highest share value since March 14. More than three million Cameco shares were traded Thursday, the busiest day for the company since March 20.

State-owned CNNC, which has more than 100 subsidiaries, is reportedly considering options ranging in value from several hundred million to more than a billion dollars for takeovers and supply agreements....