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DYL, DEEP YELLOW LIMITED
abner29
post Posted: Nov 28 2010, 03:03 AM
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Are we the only ones who recognize the potential in DYL? sadsmiley02.gif

Cameco's China deal may only be the beginning - World hunger for uranium driving sector stocks higher
The Financial Post November 26, 2010 Cameco Corp.'s latest deal to supply China with uranium is helping drive the entire sector higher. Shares of the world's second-largest producer of the nuclear fuel have risen 70% since early July as investors and utilities realize that China's reactor build program is for real. "This is a pretty large deal, so if anyone else was hoping for prices to drop again so they could negotiate a contract, they've actually just seen a significant amount of future supply eaten up," Octagon Capital mining analyst Rob Chang said. "It could be the gun that fires to begin the race for more contracts."

Cameco shares rose 4.4% after the deal was announced on Wednesday, while Uranium One Inc. jumped 6.9%, Denison Mines Corp. surged 14.7%, Paladin Energy Ltd. climbed 3% and Crosshair Exploration & Mining Corp. was up 25%.

Cameco has agreed to supply 29 million pounds of uranium concentrate to state-owned China Guangdong Nuclear Power Holding Co. (CGNPC) under a long-term agreement through 2025. China's largest clean-energy enterprise operates three nuclear power stations and is building another 14 nuclear power plants, the most currently under construction worldwide.

Earlier this month, CGNPC signed a 10-year supply deal with Kazakhstan's Kazatomprom for approximately 5.3 million pounds per year, as well as a US$3.5-billion, 5.6 million pounds per year agreement with Areva.

The current rally in uranium stocks was sparked by Cameco's deal in June to supply China National Nuclear Corp. with 23 million pounds of uranium concentrate through 2020.

"For Cameco to be supplying to China Guangdong Nuclear, it's a great win for them. It says they'll have access to other utilities; they'll be the first choice," Mr. Chang said.

"Utilities are trying to grab long-term material because they know that based on the supply-demand numbers, the uranium spot price is probably going to go higher from here."

Since China has the fastest-growing nuclear demand in the world, BMO Capital Markets analyst Edward Sterck expects Cameco will continue to sign off-take agreements with Chinese entities.

While Cameco shares were penalized in recent years due to flooding and other problems at its Saskatchewan operations, it has benefited lately from the four-month run in uranium spot prices. Uranium recently climbed to US$60.50 from about US$40 per pound in June, according to Ux Consulting.

"China's immense hunger for supply is undeniable, regardless of the eventual goal, and recent buying activity demonstrates this," Raymond James analyst Bart Jaworski said in a recent report.

While speculators are re-entering the uranium market, analysts believe the commodity will behave a little more rationally than it did in 2007, when spot prices topped out above US$140. When the nuclear reactors currently being built come into operation, they will require uranium each year for several decades.

And with demand hitting the market, there is an expectation that reactor life extensions in Germany will place additional demand in the spot and medium-term markets in 2011.

Dundee Securities analyst David Talbot pointed out that not only are the Chinese aggressive buyers, but the Russians are attempting to take over various companies such as Uranium One Inc.

It received final approval from the U.S. Nuclear Regulatory Commission on Wednesday for its sale of a controlling stake to Russia's state-owned JSC Atomredmetzoloto (ARMZ). The Canadian, American, Australian and Kazakh governments have already approved the deal. At the same time, Korean, Japanese and French nuclear concerns are becoming fully vertically integrated and are actively seeking fuel by any means for end-users that buy their reactors.

"India has barely gotten started," Mr. Talbot told clients last week, adding that "the United States is essentially nowhere to be seen during what we believe are the early days of this buying frenzy."

A new uranium-backed fund, the Global X Uranium ETF, is likely contributing to Cameco's rise. It has attracted more than US$65-million in assets since its Nov. 5 inception, 18% of which is in Cameco, the ETF's largest holding.

http://www.ottawacitizen.com/technology/Ca...l#ixzz16NtzrCih


Cameco to supply uranium to China's nuclear power co
Nov 24 (Reuters) - Cameco Corp (CCO.TO) signed a long-term agreement to supply 29 million pounds of uranium concentrate to China's state-owned nuclear power company, at a time when the Asian superpower steps up its ambitious nuclear power programme.

China Guangdong Nuclear Power Holding Co Ltd (CGNPC), the country's largest clean-energy enterprise, operates three nuclear power stations and is constructing 14 nuclear power plants.

Cameco has agreed to supply uranium concentrate through 2025, it said in a statement late on Tuesday. CGNPC has about 17,000 megawatts (MW) of nuclear capacity under construction and expects over 50,000 MW by 2020.

"This long-term supply agreement with China Guangdong Nuclear Power is a significant step for our company in the world's fastest growing uranium market," Cameco Chief Executive Jerry Grandey said.

By 2010, China aims to produce 80-112 gigawatts (GW) of electricity from nuclear power, up from the current capacity of 11 GW. It will need an additional 82 million pounds of uranium to start and fuel those new reactors.

Camceo, the largest uranium producer in Canada, said its expectation to double production by 2018 aligns well with China's nuclear reactor construction program.

Global uranium demand is expected to grow 32 percent by 2015, according to RBC Capital Markets, a forecast that already has uranium producers' share prices climbing.

Analysts are urging investors to jump on the bandwagon and buy shares of Cameco (CCO.TO), Uranium One (UUU.TO), Paladin Energy (PDN.AX) (PDN.TO) and other industry stalwarts. [ID:nN18243832]


Said 'Thanks' for this post: jtmlee  ricochet  aberline  
 
ricochet
post Posted: Nov 13 2010, 08:31 AM
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I think it has been a dissapointing week for the share price.We all still wait for the one big announcement that will put the SP where it should be,biting at the heals of EXT,BMN,PDN etc.
As for chartists,all predictions are wrong.....Dyl runs its own course.
Look at the uranium price moving up...that alone should be enough to move along the SP.

 
Duster
post Posted: Nov 8 2010, 10:00 AM
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In Reply To: abner29's post @ Nov 3 2010, 11:58 PM

Strong move today ab.



--------------------
Patience is the key to success.
 
abner29
post Posted: Nov 3 2010, 11:58 PM
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Is it possible that some of the big players circling the Extract Resources investment scene, sensing failure in their efforts might discover DYL as a reasonable alternative? It's easy to project that Palladin could be convinced to part with its 20% for a reasonable profit. That would give a prospective buyer/buyout a nice leg up on its way.

 
Duster
post Posted: Nov 3 2010, 04:05 PM
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In Reply To: jtmlee's post @ Nov 3 2010, 03:26 PM

Good luck with it Jt, I took profits today and will continue to keep a keen eye on preceedings.

Duster.



--------------------
Patience is the key to success.
 
jtmlee
post Posted: Nov 3 2010, 03:26 PM
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In Reply To: Duster's post @ Nov 3 2010, 10:47 AM

11+ Mil shares is no mean feat on DYL's average trading volume. A few months back 4M shares turn over was considered hefty and 'somethings going on' question mark written all over it. I had hoped that the speeding ticket did not check the rally and thank god it didn't. The strong finish had me wondering whether it was day traders moving in or longer term investors seeing value for a leverage play on a more advanced explorer. Who knows and we will find out if there is a continuation of the rally.

 


Duster
post Posted: Nov 3 2010, 10:47 AM
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In Reply To: ricochet's post @ Nov 2 2010, 02:41 PM


QUOTE
What will it take to spike the share price?


Not much !




--------------------
Patience is the key to success.
 
jtmlee
post Posted: Nov 2 2010, 02:47 PM
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In Reply To: ricochet's post @ Nov 2 2010, 02:41 PM

There is your spike. 146K shares took out all the 23.5 cents ask.

 
ricochet
post Posted: Nov 2 2010, 02:41 PM
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No volume just stumbling along up one day down the next .Announcements lack investor confidence?
What will it take to spike the share price?
Longterm holders { me} still waiting for the big pay day.

 
hungry
post Posted: Oct 25 2010, 09:18 PM
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In Reply To: ricochet's post @ Oct 25 2010, 08:32 PM

Here your ann eq

From AIR today

Uranium stocks running hot today on suggestions South Korea want to package a deal to build nuclear power plants in global markets using their advanced technology and Australia’s uranium. PDN up 1.4%, ERA up 3.0%, EXT up 4.5%, BMN up 8.5%, DYLup 9.5%, TOEup 12.5%, MGO up 5.5%.

 
 


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