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Spot Uranium $29, 41.5% increase in 2005

On Monday morning, UX Consulting’s spot price increased by $2.75 to US$29/lb, the largest one-week price increase in the history of commercial uranium market. Toll Cross Securities’ analyst Greg Huffman notes (5/10/05) that this is the eighth consecutive week of spot price increases, and is the largest weekly increase in the history of Ux price reporting, surpassing last week’s $2.25 per lb increase ($5/lb increase thus far in May). According to Ux Consulting, “seven deals totaling 2.25 million pounds U3O8 were added to the database and offer prices steadily increased.” Says Huffman in his report, “The UxC notes that further spot price increases in May are almost certain, making the price appreciation during the current month the most rapid ever. Year-to-date, the spot price has increased by 41.5%, while our Toll Cross Junior Uranium Index has increased by only 15.5%. Since last week’s spot price increase, uranium producers are up an average of 5%, while companies in our Production Visibility category are up an average of 13%. The share price of the junior uranium exploration companies that we track increased by an average of 8.9%. Last night’s spot price increase of $2.75 per lb may serve to further stimulate buying interest in the uranium sector, particularly amongst the companies in our Production Visibility category.”

Says the Ux Weekly, “What is unexpected, however, is the rate at which price is going up, which has taken buyers and sellers alike by surprise.

“At this stage, the market is being demand driven, with spot volume so far in 2005 totaling over 15 million pounds despite the fact that we are little more than one-third the way through the year. Looking forward, the question is whether demand will continue or accelerate its current pace as buyers seek to avoid paying what may be much higher prices in the future, or whether higher prices will serve to douse demand as buyers refuse to chase what some consider to be unrealistic or unsustainable prices.” (May 10, 2005)

The Ux Weekly is the industry's leading source for timely market information. The Weekly publishes spot prices for the uranium, conversion, and enrichment front-end as well as tracking current activity in these markets. It provides perspective pieces on market trends and developments, and covers news affecting the front-end markets. The Weekly is issued electronically as well as by fax and mail, when requested.

The Ux Consulting Company, LLC (UxC) publishes world nuclear fuel spot and term prices, The Ux Weekly, Market Outlook Reports, and provides extensive consulting services on the front-end of the nuclear fuel cycle. UxC handles all aspects of the fuel market including uranium (U3O8) production, conversion (UF6) and enrichment (SWU & EUP) services, contracting activities and procurement services.