Global X's newest ETF, Global X Uranium (URA), soared 11% Monday, outpacing all other ETFs, after the metal's mark price jumped 11% over the weekend to $57.50 a pound. Cameco (CCJ), the world's biggest producer, raised its production outlook. The radioactive metal, used mostly to generate electricity, has surged 29% this year. A mining analyst, who refuses to be named, said Energy Resources of Australia and Cameco have been trade the metal on the spot market because they have not been make enough to meet their extended term obligations. Hedge funds have caught on and skip on the buying bandwagon.
Kazakhstan, the world's leading uranium miner, is slow production to command higher prices at a time when takeout ore from mines has gotten harder. Uranium is not formally traded on relations as are oil and gold. Deals are made between private businesses for real physical delivery. The Uranium Energy (UEC) rocketed 33%, Uranium Resources (URRE) 32%, Uranerz Energy (URZ) 15% and Denison Mines (DNN) 12% on Monday. None of these small miners, trade for less than 5 a split, has ever reported a profit. Yet they've soared 44%-178% this year on civilizing outlooks.
Cameco's CEO on Monday said the company's full year output manufacture rose to 22 million pounds from 21.5 million and that it's on path to double by 2018. Meanwhile, the Canadian company lowers its capital expenses outlook for fiscal 2010. Third quarter earnings fell 13% on senior exploration costs and a strong Canadian dollar. Sales fell 15% from a year previous on a 33% decrease in sales volume. Cameco shares climbed 7% Monday to a 52 week tall of 35.74 in more than four times average trade. URA, the first pure play for the metal, holds 23 companies occupied in mining, refining, exploration and creation equipment for the uranium industry.
Kazakhstan, the world's leading uranium miner, is slow production to command higher prices at a time when takeout ore from mines has gotten harder. Uranium is not formally traded on relations as are oil and gold. Deals are made between private businesses for real physical delivery. The Uranium Energy (UEC) rocketed 33%, Uranium Resources (URRE) 32%, Uranerz Energy (URZ) 15% and Denison Mines (DNN) 12% on Monday. None of these small miners, trade for less than 5 a split, has ever reported a profit. Yet they've soared 44%-178% this year on civilizing outlooks.
Cameco's CEO on Monday said the company's full year output manufacture rose to 22 million pounds from 21.5 million and that it's on path to double by 2018. Meanwhile, the Canadian company lowers its capital expenses outlook for fiscal 2010. Third quarter earnings fell 13% on senior exploration costs and a strong Canadian dollar. Sales fell 15% from a year previous on a 33% decrease in sales volume. Cameco shares climbed 7% Monday to a 52 week tall of 35.74 in more than four times average trade. URA, the first pure play for the metal, holds 23 companies occupied in mining, refining, exploration and creation equipment for the uranium industry.
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