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  • Answers - New Uranium Miners Exploit Record Price

    Are U.S. utilities wishing the Cigar Lake mine floor nightmare would go away by next month? Has sufficient time elapsed that the nuclear utilities have reached the point of denial, and that up to 10 percent of the world’s mine
    According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
    d uranium won’t be stalled indefinitely? Cameco Corp’s December 21st update offered some hope which has frozen the spot uranium prize at $72/pound for three straight weeks.

    Cameco Corp’s chief operating officer glumly hinted
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    at something we highlighted in our late October report, “Drilling through the Athabasca sandstone has been more challenging than anticipated.” Several sources, some of which may be reliable, suggested Cameco still can’t the st
    lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

    op the water from coming in at the Cigar Lake uranium mine. We’ll find out in February whether this was gossip, old news or accurate.

    According to Treva Klingbiel, editor of TradeTech’s Nuclear Market Review, the weekly spot
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    U3O8 indicator stalled at $72/pound for the third straight week in quiet trading. Only one small off-market transaction took place as “the majority of market participants remain focused on early February and the anticipated up
    d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    date from Cameco regarding the status of remediation efforts underway at the Cigar Lake mine,” Ms. Klingbiel wrote.

    However, the number of active buyers rose by one to an even dozen, this past week, when a U.S. utility asked
    ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
    to purchase approximately 650,000 pounds U3O8 contained in UF6. Total demand for U3O8 equivalent rose to 6.5 million pounds. “Fifteen buyers remain in the long-term market evaluating or actively seeking offers totaling almost
    easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
    54 million pounds U3O8 equivalent,” Klingbiel wrote. One U.S. utility and two non-U.S. utilities are presently evaluating offers to buy more than 16 million pounds of U3O8 equivalent between 2009 and 2016. “Nine utilities cont
    nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    inue to evaluate potential off-market purchases to cover long-term enrichment commitments,” wrote Klingbiel.

    For some the Cigar Lake fiasco has become a blessing. On January 11th, UrAsia Energy announced a sales contract wit
    and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
    h a “major North American utility.” According to the company’s news release, approximately four million pounds of U3O8 have been offered for delivery over a five-year period from the Akdala uranium mine in Kazakhstan. UrAsia h
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    as a 70-percent interest in the joint venture, which wholly owns the mine.

    Because of the recent surge in the spot uranium price, the contract includes market-related pricing with a floor price protection at the weekly spot p
    ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

    Following aspects would a
    rice indicator of US$72/pound. Of course, over the course of the next few years, the utility may be forced to pay more for the same uranium but UrAsia is guaranteed this floor price.

    A day earlier, SXR Uranium One announced f
    dd to the challenges in developing combination products:

    Which markets to tap where the combination products can do fairly well?
    Which combination prod
    urther sales contracts from the company’s Dominion uranium/gold project in South Africa. Four new contracts offering 3.2 million pounds of U3O8 for delivery between 2008 and 2012 not only include escalating floor price protect
    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    ion but are also uncapped. Two months earlier, SXR had announced its first sales contract with a “western world utility” offering 1.5 million pounds for delivery between 2008 and 2012. The lion’s share of Dominion uranium prod
    tions increase the patient compliance?
    What would be the developing cost?
    How to tackle the risks encountered during combination product developmen
    uction has yet to be negotiated.

    Because of the Cigar Lake flooding, utilities now contracting with UrAsia and SXR have been forced to pay about $150 million more for the 8.7 million pounds of uranium oxide than they might ha
    t?

    As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
    ve paid on October 20, 2006. Because of the escalating floor price protection, the final penalty could surpass $200 million – just because utilities refuse to believe the uranium price should be ‘this high.’ In October, Sprott
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    Asset Management’s Kevin Bambrough likened the mood between uranium buyers and sellers to a poker game.

    A year ago, U.S. utilities and others could have committed to those 8.7 million pounds for about $250 to $400 million le
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
    ss than what they might ultimately pay for this same U3O8. And the next generation of near-term uranium producers, several companies which were discussed in StockInterview’s “Investing in the Great Uranium Bull Market” (Click
    .

    As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
    to bookstore), are likely to become the next big winners. Right now, the sellers are holding the winning hand. Unless Cameco offers some relief, the utilities’ bluff for lower prices has continued to penalize their shareholder
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    s.

    As SXR’s Chief Executive Neal Froneman told one news service late this past week, “I would like someone to tell me how you can get a better contract than that!”

    COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED


    tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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