Commodities | Jan 12 2010
By Rudi Filapek-Vandyck
Participants in the spot U3O8 market have proved rather slow in re-entering the market into the fresh calendar year with industry consultant TradeTech registering only one transaction in the week ending on Friday. No surprise thus, the industry consultant has left its weekly spot price indicator unchanged at US$44.50/lb.
Talk of the sector remains the potential market entrance of a new uranium fund by Uranium Investment Corp. The company has issued an amended and restated preliminary prospectus and term sheet. According to the documents, the fund is seeking to raise C$150 million. If successful, the fund intends to invest up to
90% of the net proceeds to acquire uranium. This could give overall market dynamics a positive boost. The offering is expected to close on or about February 9.
TradeTech’s medium-term price indicator remained unchanged at US$50/lb and its longer-term benchmark remains at US$60/lb.
At present there’s no difference in weekly spot prices as published by either TradeTech or fellow-consultant Ux Consulting.
