Uranium (U3O8 : US$42.25), Net Change: 1.00, % Change: 2.42%
Utilities will have to step up to the plate eventually. The spot price of uranium rose again this week to US$42.25/lb U3O8, up
US$1.00/lb from the week before and US$1.25/lb higher than its lowest point year-to-date, according to Ux Consulting.
Canaccord Adams notes that on a year-to-date basis, by March 19, 2009, there were 3.4 million lbs of U3O8 traded over 18
deals with U3O8 prices hovering near US$42.50/lb, whereas, thus far, in 2010, a total of 7.5 million lbs of U3O8 traded over 38
deals recorded by Ux Consulting. One difference between then and now is the absence of utility buying for consumption in
today’s spot market; the majority of spot transactions this year have been discretionary purchases. Indeed, since discretionary
buying has made up the bulk of purchases since August of last year, we continue to wait for utility buying to show up in the
market, which was partially responsible for the spike in prices between April and June of 2009. Canaccord Adams' top picks in
the uranium sector are: Paladin Energy (PDN) and Ur-Energy (URE). An attractive buy: Uranium One (UUU).