Replies to post #3926 on Delta Mining & Exploration (fka DMXC)

[HonestInjun]

Whoops! Was trying to copy the uranium part--OT
URANIUM $U.S.29.50 n/c
DENISON MINES (T-DEN) $17.55 +0.32
PALADIN RESOURCES (T-PDN) $ 1.37 +0.07
The headline-making agreement yesterday between the United
States and India regarding uranium suggest it could have some
significant implications for uranium and the nuclear power market.
Raymond James analyst Eric Zaunscherb in a report today
writes; “the uranium market got a potentially large boost as U.S.
President George Bush and Indian Prime Minister Manmohan
Singh announced a new bilateral partnership designed to pave
the way for India to develop its civilian nuclear power program…...
U.S. law currently prohibits export of nuclear technology
to countries that have not signed the Nuclear Nonproliferation
Treaty—as is the case with India. A pressing issue appears
to be fuel supply shortages at the U.S.-built Tarapur nuclear
power plant near India’s commercial capital, Mumbai.”
Purportedly, Zaunscherb writes, “the Tarapur reactor is down to
its last stock of fuel from Russia and operators have expressed
inability to continue supply due to U.S. restrictions. With new
nuclear cooperation, fuel supplies should become available.”
In the report it is pointed out that India has 14 nuclear plants, of
which 12 get their 300 tonnes of uranium fuel from domestic
sources, but the remaining two, Tarapur I and II depend on 25
tonnes of foreign-sourced uranium fuel annually. Also, he
writes, India is expected to have eight new plants operational
within the next two and a half years. Additional plants are dependent
upon the lifting of restrictions to make availability of
uranium more obvious.
Zaunscherb writes, “we believe it may have significant positive
implications for the prices of uranium and by extension, for the
share price of uranium producers like Denison Mines.” He reiterates
a buy for Denison.
Meanwhile, another uranium explorer that’s probably closer to
production than many others is Paladin Resources, which we’ve
mentioned before and it’s been heading up nicely of late. People
shouldn’t get too carried away because this is an Australian
story and it has that Australian disease….a whole bunch of
shares outstanding. At last count, it was more than 400 million.
This newsletter is solely the work of the author for the private information of clients. Although the author is a registered investment advisor at Canaccord Capital Corporation
(“Canaccord Capital”), this is not an official publication of Canaccord Capital and the author is not a Canaccord Capital analyst. The views (including any recommendations)
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e-mail: [e-mail] July 20, 2005 e-mail: [e-mail]
Denison Mines
Paladin Resources
www.denisonmines.com
www.paladinresources.com.au