Just when the uranium markets begin to look dull – like they did in the 1980s and 1990s –
along comes bad news planting the seeds of renewed interest. In October 2006, it was Cigar Lake. In March 2007, flooding at the Ranger operations attracted more investors.

Denison Mines has a monopoly on conventional U.S. uranium mining as a result of owning the only operating uranium mill in the United States. Until uranium ore is milled, it has no value and is a liability to store.

We thought by now we'd heard it all. But the quote which follows, given to us in a tape-recorded telephone interview by the man who obtains nuclear fuel for the largest nuclear utility in the United States, surprised even us.

Mired in secrecy, the uranium market hopes to someday offer price transparency. To whom will this 'real' uranium price become transparent? Industry insiders know well before the general investing public ever finds out.

During the uranium bull markets of the 1950s and the 1970s, it was the United States Government's policies which stimulated uranium production. Both actions were followed by multi-year rallies and brought about then-historical uranium price peaks. Each of the previous two bull markets ended when the federal government changed the existing policy.

Nearly 500 companies are posing as 'uranium mining companies' worldwide. Hundreds of those publicly traded uranium companies will never mine a single pound of uranium. Along with the crash-and-burn of those companies, many investors could lose all or a large part of their speculative investment. How can one really find out which companies have an honest shot at becoming uranium miners?

Synatom's Fuel Supply manager Gerard Pauluis said, "As the market matures, we will experience uncontrollable price spikes." Urenco senior executive Maurice Lenders argues, "Suppliers and customers must be open about what they have and what they need so that supply will be available to meet demand."

According to Friday's Nuclear Market Review (NMR), many market participants were left stunned by the recent record jump in the weekly spot uranium price. The market has increasingly diverged between those who have U3O8 and those without. Utilities with existing supply contracts "are heaving a sigh of relief," NMR editor Treva Klingbiel wrote. And those trying to find uranium in today's climate "are forced to face the reality of a seller's market," she said.

Soaring yellowcake prices have accelerated a greater number of uranium juniors rolling off the assembly line. As fast as stock promoters can revive old shells, joint venture a more serious uranium company's castaway property into the re-named shell, and then wheel a former 'big name' out of retirement (or a nursing home), the company will announce they are in the 'hunt' for uranium.

Permitting a uranium mine requires more than a simple application to mine. And, as we discovered, the process can take between three and six years (sometimes even longer), costing several million dollars and requiring numerous scientific studies on a company's property. This could add additional pressure to uranium prices.

Bids are due in Corpus Christi, Texas on April 3rd for the sealed-bid auction, conducted by Mestena Uranium LLC, for another modest lot of 100 thousand pounds of U3O8. "Buyers are once again expected to compete aggressively for the material," Nuclear Market Review (NMR) editor Treva Klingbiel wrote in the monthly edition of the nuclear industry trade magazine. "Any material offered at fixed price is highly sought after by potential buyers."

After the mega uranium merger between SXR Uranium One (SXR) and UrAsia (UUU), speculation has run rampant as to which uranium companies will next consolidate. With a soaring uranium price and lofty market caps, anything is possible. Or is it? Some of the more likely targets seem reluctant to sell out too soon.