Uranium Stocks Could Get Some Help, But It Might Be A While (DNN, CCJ, URZ, UEC, URRE, USU)
Uranium prices could average $55-$65 per pound this year before rebounding to the $70-$75 range next year, according to Uranium One Vice President Fletcheer Newton, Bloomberg News reported. A bounce to the $70-$75 per pound level would probably mean some good news for the battered and bruised Uranium Stocks Index, which has plunged almost 50% in the past three months and is down 1.8% today.
At an industry conference, Newton noted that it is not economical for new uranium mines to be built with uranium prices as low as they are today, Bloomberg reported. Denison Mines (DNN) is proving to be a bright spot in the Index today, with a gain of 1%. The company said on Thursday that its first-quarter loss narrowed when compared to the fourth quarter and that revenue jumped to $26.8 million from $21.9 million in the year-earlier period.
Dahlman Rose said Denison’s Wheeler River project could eventually prove to be a world-class ore body, but a couple of other exploration areas turned in less-than-impressive results. TD Newcrest upgraded Denison to “hold” from “reduce” while upping its price target on the stock to around $3 from around $2.50.
Shares of Cameco (CCJ), the largest North American uranium miner, are fractionally lower. Uranerz Energy (URZ) is plunging 4% while Uranium Energy (UEC) is sliding by 3%. Uranium Resources (URRE) and USEC (USU) are both lower by 1%.
Investors can track the Uranium Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
|Home | Find | Research | Track | Register | My Account | Logout||Web site design by LightMix|
|© 2011 Indie research Corp. All rights reserved.|