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Uranium Stock Company Listing

(last update March 26)

The uranium boom that is sending the price of related stocks through the roof should be viewed with utmost caution, analysts warn. Keen investors in the boom should be prepared to lose money on what are clearly speculative stocks, they say.  Nevertheless, fortunes have and are being made in a relatively short-time trading uranium stocks. But how long can soaring share prices be sustained given the political hurdles surrounding the nuclear resource also known as yellowcake?

Uranium stocks are soaring on the back of a uranium price that has risen from about $US22 a kilogram three years ago to almost $US45 today. Demand for the mineral has exceeded mine supply, there have been barriers to production and uranium is a growing alternative source of power -- not to mention the price keeping pace with hype surrounding the material.  The stand-out uranium investment on the Australian Stock Exchange has been Paladin Resources, which has mines in Namibia, Africa, and prospective projects in SA and WA.  Paladin has 44,000 tonnes of uranium oxide at its Langer Heinrich project in Namibia and it is expected to start producing within a year, according to State One Stockbroking's mining analyst, Brendan Fogarty.  Mr Fogarty seriously questions whether Paladin's commercial resource can justify its share price rising from 5c on January 1, 2004, to $1.15 on March 10 last year and $3.66 on Friday. Simply, he says, a $2000 investment in Paladin when the stock was worth 5c is now worth $146,400 -- a return of 7220 per cent. But what favours Paladin over Australian-based explorers is having a mine approved for commercial development in Africa, Mr Fogarty says.






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