Fukushima affects uranium stocks, Star Tribune, 18 DecShare prices of global uranium majors continue to suffer the aftereffects of an earthquake and tsunami that rocked Japan’s Fukushima nuclear power plant last March.
That’s the assessment of Sydney, Australia-based Resource Capital Research, which noted share prices for selected companies have declined substantially.
An analysis noted that Cameco shares declined by nearly 50 percent over the past year, while Uranium One shares had dropped by nearly 45 percent. Energy Resources of Australia stock fell by 82.1 percent.
“The Merril Lynch Uranium Equity Index (a global basket of uranium equities) is down 2 percent over the past month, down 7 percent over three months and down 54 percent over the past 12 months,” the firm said in a report earlier this month. …..
The uranium spot price was pegged at $52.25, down from $67.75 prior to the Fukushima disaster. In the near-term, Resource Capital Research said Fukushima will continue to weigh on the market, “including Germany’s decision to
close reactors and the potential for disposal of surplus utility inventory.”…..
Archive for the ‘Uranium One’ Category
Uranium prices falling steadily over past year
January 2, 2012Cameco, Denison, Uranium One, Paladin – uranium share prices falls down 27%
October 4, 2011Shares of Denison Mines and Uranium Resources Face Strong Downward Pressure, MarketWatch, NEW YORK, NY, Sep 30, 2011 (MARKETWIRE via COMTEX)-- Uranium stocks have struggled this month as prices for the radioactive material have plunged. According to the latest quarterly report by Resource Capital Research, uranium prices are down 27 per cent over the past three months and 23 per cent over the past year….
Poor growth predicted for uranium industry – Uranium One
August 14, 2011Uranium One cuts demand forecast by 8%-10% TORONTO Mining Weekly, 9th August 2011 – Canada’s Uranium One has cut its demand growth projections for uranium for its namesake product by 8% to 10% over the next decade,…..
Last month, Australia-based Paladin Resources cut its 2012 uranium production guidance to 7.4-million pounds and 7.9-million pounds from the previous forecast of 8.2-million pounds, mainly because of delays to its stage-three expansion at the Langer Heinrich mine in Namibia.
This was followed by an August 4 announcement by uranium’s perennial under-performer, Rio Tinto’s Energy Resources of Australia, that it had nearly halved the reserves at its Ranger mine……
Yellow cake prices dropped to $49/lb from around $66/lb in the immediate wake of the Japanese disaster, and have since settled at about $52/lb.–
Uranium One suffers price dive
April 9, 2011Uranium One has year-end loss The Calgary Herald March 8, 2011 . Uranium One Inc. reported a fourth-quarter loss of $148.2 million on Tuesday, compared with a profit of $179.6 million in the same period a year earlier. It said the loss was due to a series of one-time expenses.
The company, based in Vancouver and Johannesburg, said the loss amounted to 24 cents a share, compared with a profit of 38 cents a share during the fourth quarter of 2009……
Russian uranium company Atomredmetzoloto, to own Utah town
January 8, 2011SALT LAKE CITY, Dec. 12 (UPI) — A Russian company has won approval to take over a U.S. uranium operation, including a whole town in Utah, an executive says.Citing national security, four members of Congress had urged the U.S. Treasury to keep the Canadian Uranium One company from selling majority ownership to Atomredmetzoloto, whose parent entity is Rosatom, the Russian nuclear agency. One concern is that Rosatom has sent highly radioactive reactor fuel to Iran.
But the Treasury Department, the U.S. Nuclear Regulatory Commission and the Utah Division of Radiation Control have approved the deal, The Salt Lake Tribune reported….Russian firm buying U.S. uranium mine – UPI.com
Senators seek to block Russian ownership of U.S. uranium mill
November 11, 2010Four Republican members of the U.S. House of Representatives sent a letter to Treasury Secretary Timothy Geitner, urging him to block the Russian-Canadian deal,
Uranium Deal Faces U.S. Objections, The Moscow Times, 11 October 2010, By Derek Andersen, Russian uranium producer Atomredmetzoloto maintained a calm front Friday in the face of objections by powerful U.S. legislators to a deal that would give it control over a uranium mining operation in the United States. (more…)
Uranium spot price falls with fears over Uranium One and Rosatom
July 10, 2010“alarmed industry observers worried that the Vancouver-based company might end up serving the Kremlin’s strategic interests.”
The spot price of uranium reacted to this news by falling in price.
Financing uranium mining raises concern, Star Tribune, Hildred Shelton, July 7, 2010 The hearing on uranium mining conducted in Chatham on June 22 by the Virginia Coal and Energy Commission Subcommittee has received extensive comment………………..that brings up a current development in financing uranium mining which is causing international commentary…that “world of capital.”
Uranium One Inc., the second largest uranium mining company in Canada, is reportedly being taken over by ARMZ, a division of the Russian State Corporation Rosatom (Russian State Atomic Energy Corporation).
For 51 percent of the stock of Uranium One, ARMZ, Rosatom, will pay Uranium One $610 million U. S. dollars and the controlling (or 50 per cent) interest in two Kazakhstan uranium mines.
The CEO of Uranium One, Jean Nortier, referred to this as a “shift to Russian-style Capitalism.”
If this Uranium One/Rosatom deal goes to completion, as reported, then a uranium project, Honeymoon Well, in South Australia scheduled to be in production by the end of 2010 will also be under the control of the Russian Government. Uranium One owns 51 per cent of Honeymoon Well…………The London newspaper, Globe and Mail, on June 27 stated it best in saying, “The prospect of Kremlin control of the Canadian company left many investors worried that Uranium One would be pressured to serve Russian strategic interests that do not necessarily deliver the best returns…” and “alarmed industry observers worried that the Vancouver-based company might end up serving the Kremlin’s strategic interests.”
The spot price of uranium reacted to this news by falling in price.
Russia now in control of Uranium One
July 10, 2010Uranium One gives up control, FINANCIAL POST, June 2010, The company has negotiated a complex deal in which it will hand over a controlling stake of at least 51% in itself to the state-owned Russian uranium companyJSCAtomredmetzoloto (ARMZ). It is a subsidiary of Rosatom, the world’s biggest integrated nuclear firm……”Putting cash in the pockets of our shareholders and being able to grow our business were two very compelling reasons [to do this deal],” Mr. Nortier said……
Not all investors are thrilled with the idea of Uranium One increasing its exposure to Kazakhstan. But Mr. Nortier said the company has worked “very hard” on improving its government relations, and has made a lot of progress.A year ago, Uranium One was caught up in a scandal when the head of Kazakhstan’s state-owned uranium miner was accused of illegally selling stakes in uranium deposits to foreign companies.
New Australian uranium mine to be controlled by Russia
July 10, 2010Uranium One’s Honeymoon Well uranium project in South Australia will move into Russian government hands.
Uranium One to ARMZ? | Industrial Fuels and Power, 9 July 2010, Uranium One, the second largest uranium company in Canada, is reportedly being taken over by ARMZ, a division of the Russian state nuclear company Rosatom. ARMZ will purchase a 51 per cent stake in Uranium One in exchange for US$610m. (more…)
Uranium One corporation to be controlled by Russia
June 29, 2010Russia’s ARMZ gains control of Canada’s Uranium One, Industrial Fuels and Power, 9 June 2010, Russia’s ARMZ has agreed to acquire a controlling stake in Canada’s Uranium One Inc by buying 356m new shares, effectively raising is current 23 per cent holding to at least 51 per cent. ARMZ will pay the Toronto-based company US$610m cash as well as interests in two Kazakh mines. Uranium One will gain 50 per cent of the Akbastau mine and 49.7 per cent of Zarechnoye in the south of the country.
The acquisition is part of the expansion plans of Rosatom Corp, ARMZ’s parent company and represents the first North American uranium venture for the firm. Russia’s state-owned nuclear company is seeking more uranium sources to supply the nuclear reactors its is building outside Russia. Last month, it revealed plans to invest US$1bn in Namibian uranium deposits. “We’ll use Uranium One as a platform for growth,” Rosatom CEO Sergei Kiriyenko said.
Russia’s ARMZ gains control of Canada’s Uranium One | Industrial Fuels and Power
