From Dave Pescots Letter today

HATHOR EXPLORATION (V-HAT) $1.75 -0.14

While markets in Canada and the U.S. look to test their old

lows, in the world of commodities, with the world-wide recession

peaking, commodities have continued to fall off a cliff. Oil

is now less than half of where it was at the peak; gold attracts

no attention at all despite the crisis that is supposed to create

a demand for gold; copper is approaching a level that is close

to a third of where it was and now commodities like molybdenum

join the group that are disappearing quickly in price.

About the only commodity adding a little bit to its valuation

these days is uranium. Mind you, it had its big run a year ago

before it collapsed and now it seems to be attracting attention.

Again, the main focus for uranium is power production and

plants continue to be built in places like India and China

(although not at a big rate) but plans for down the road continue

to accumulate at enormous rates. Which is the good

news.

The bad news is these plants can take anywhere from four

years to get okayed and built in China to 13 years in the United

States. But back to the matter at hand and that’s uranium

prices. TradeTech, one of the followers of the uranium price

suggests that there are several developments regarding uranium

that is helping to strengthen its price involving negative

news from the production sector, increasing demand and the

establishment of a new uranium fund.

They report that Kazakhstan’s national nuclear company,

Kazatomprom, announced this week that it expects 2009 production

to be roughly 14% less than previously forecast.

A second item is that Cameco reported that the McArthur

River project had experienced a “modest increase in water

inflow” which doesn’t bode well for increased production

down the road.

Meanwhile, it looks like New York Nuclear and Deutsche

Bank announced plans to establish an uranium fund, an investment

vehicle in which the primary asset will be physical

uranium.

In the operation of nuclear powered hydro plants, the cost

of uranium is an incredibly small portion of all costs, particularly

construction. So it’s starting to look for the short, medium

and long-term that uranium may have a future...and

meanwhile, we just wonder when all the other commodities

might just bottom...which year?

Meanwhile, today in research by Credit Suisse on the

“Uranium Market Review” they write, “The month of November

is showing entries of new buyers into the market which is having

a positive effect on pricing…Currently, a non-US Utility is

seeking to purchase ~2Mln lbs U308 for delivery by July 2009.

This new demand in the spot market is motivating sellers to

increase their offer prices, resulting in the third increase in

spot price in a row since July.”

drill it and they will come
griz