Three uranium companies were among the top 10 Australian and Hong Kong-listed market risers this week for a mix of reasons. Of the three, Energy Resources Australia was up on no news, while the market liked Toro Energy as reduced costs, and the fact Paladin Energy was selling some uranium assets. Energy Resources Australia, the longest continually operating uranium producer in Australia, made the strongest gains of 24.46% to top the list on no news aside from a continuing debate in eastern Australia over reliable future power supply options. The company operates the Ranger mine in the Northern Territory, 260 km south-east of Darwin. Toro Energy was third with a gain of 20% after releasing a study that reduced the size and cost of the processing facility at its proposed Wiluna uranium project in Western Australia.
The study cut the capital costs of the proposed hydrometallurgical plant by more than 40% to about A$78 million. The company has also made a recent foray into nickel, starting an exploration drilling program at the Yandal One prospect in a partnership with OZ Minerals. Paladin Energy was up 12.69% after yesterday announcing it had sold non-core exploration assets to Uranium Africa for A$2.5 million, and had also sold its entire shareholding in the uranium hopeful Deep Yellow project. The uranium price has endured a long decline over the past five years, from more than US$52 per pound to around $20/lb at present. Meanwhile, Dome Gold Mines (up 23.56%) was among the few gold companies to make this weeks list as the precious metal price dropped in the wake of the U.S. Federal Open Market Committee decision to lift interest rates.
The original URL: http://www.mining-journal.com/market-insight/uranium-companies-power-up/
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