In the Market

Update for the public provided three days after publication.

January 31, 2010–The Exchange Value fell to $42.25 per pound U3O8, a decrease of more than five percent ($2.25) from last month, as recent transactions and aggressive sellers continue to exert downward pressure on uranium prices.

The Exchange Value is now at its lowest level since March 2009. The steady price decline of the past few months reflects the continued availability of low-priced supply. In addition, most current procurement activity in the spot market is discretionary and thus, extremely price sensitive.

Fourteen transactions are reported this month. Over half of the transactions involved utility buyers. Prices declined progressively during the month and transactions concluded early in the month were at prices higher than those finalized near the end of the month.

Currently, four utilities are seeking offers for just over 800 thousand pounds U3O8. One US utility, seeking up to 200 thousand pounds U3O8, will conduct a “reverse” auction on February 11. Uranium Investment Corp., a new uranium fund, is seeking to raise C$150 million (US$140.6 million) for investment in uranium products and the offering is expected to close on February 9. If successful, the fund could introduce significant new demand into the market. read more