Wednesday, March 15, 2006

Mar 15 Uranium Stocks Update: sxr Uranium One (TSE:SXR)

The uranium landscape will be significantly altered once the deal between Australia and China is ratified to allow uranium exports. Companies with uranium exposure like BHP Billiton have benefited from the speculation that Australia will give its blessing to ship yellowcake to China. Once again, keep an eye out on sxr Uranium One, as they could only benefit from a successful deal, what with their fully permitted Honeymoon uranium project still under deliberation. Their stock has just broken the $8.00Cdn level again, and a deal ratification could be grounds for successful consolidation above that level. Paladin, another Australian company, could be impacted as well.


Blogger charlottebandit said...

Very good observation spelunca. Isn't China wanting BHP to exclusively supply them with uranium?

If that's so, BHP won't trade apples-for-apples, where they won't cut off their current buyers (US) just to switch to China. This is where the expansion element of Olympic Dam comes in I believe. Who knows though?

7:23 AM  
Blogger charlottebandit said...

On another note, BHP will probably lobby the political leaders for them to select the Yeeliree deposit (BHP) because they have deeper pockets than Laramide, Summit Resouces, Paladin, and ERA if and when uranium mining allows (5) active producers.

Of course this is just speculation. At least we know that SXR Uranium One is next up! :)

7:26 AM  
Blogger charlottebandit said...

I wouldn't be surprised if a U producer buys out Summit Resources (SRCSF) or even makes an offer to establish them selves as the undeniable uranium holder of Australia.

Never know.

7:32 AM  

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