Mestena Uranium Auction Expects Eager Bidding

By the end of March, Mestena Uranium LLC is expected to offer another 100 thousand pound U3O8 for sale through a sealed-bid auction. Each spot uranium auction conducted by Mestena has resulted in strong price increases in the spot uranium market. "Bidding is expected to be aggressive," wrote Nuclear Market Review editor Treva Klingbiel in the March 16th issue.

By the end of March, Mestena Uranium LLC is expected to offer another 100 thousand pound U3O8 for sale through a sealed-bid auction. Each spot uranium auction conducted by Mestena has resulted in strong price increases in the spot uranium market. "Bidding is expected to be aggressive," wrote Nuclear Market Review editor Treva Klingbiel in the March 16th issue.

"The market is already under upward price pressure due to thin supply," said Klingbiel. The uncertainty of supply accompanying the recent flooding at ERA's Ranger mining operations in Australia has not yet worked its way through the market. "Several parties are nearing completion of negotiations of deals," Klingbiel wrote. With nine buyers hoping to obtain about four million pounds U3O8 equivalent, "more demand (is) on the horizon," she added. Much of the current demand depends upon how soon ERA can bring Ranger's operations back to the expected production level.

For now, it appears buyers show willingness to pay more to obtain a fixed price for their supply of uranium. How high will this 'fixed price' reach at the next uranium auction? One source told us the next uranium auction would yield triple digits. In an earlier phone conversation we had with Joe Card of American Fuel Resources LLC, he wasn't as certain. "It will get there eventually," Card told StockInterview.

Article co-authored by James Finch and Julie Ickes of StockInterview.com. Additional details can be found at www.stockinterview.com