Uranium Stocks Tipped to Resume Upward Path
Source: thewest.com (7/14/07)
The roller-coaster ride of uranium stocks is about to crank up again, with expectations the price of yellowcake, which has been treading water over the past few weeks, will bounce up again next week.
Uranium stocks, including both the handful of actual producers and the myriad of wannabes, have been standout sharemarket performers, basking in the glow of a booming uranium price.
But the fizz has deserted the sector over the past few months, raising fears the uranium bubble may have burst as the yellowcake price eased nearly $US3 a pound to $US133/lb.
The uranium price is updated only weekly and in early April sent investor fever soaring when it jumped 19 per cent to $US113/lb, the biggest rise seen since prices were first recorded in 1968. The catalyst was supply concerns stemming from forecast production cuts at Energy Resources of Australia’s Ranger mine and delayed initial output from Cameco’s huge Cigar Lake project in Canada...
Investment bank UBS this week released a bullish forecast for the metal, tipping it would reach $US200/lb next year and increasing its forecast average price for this year to $US127/lb, up from $US95/lb.