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New data uploaded today…

Top 10 Australian ASX Uranium movers on Friday 18th

There is a simple method for Australia to keep its’ hold on our resources or at least some of them…

It is good to see this being explored again

Explorers need incentives, Roche

11 September 2009 | by Michael Mills

Queensland Resources Council (QRC) chief executive Michael Roche has called on the Federal Government to introduce tax incentives for junior minerals explorers, such as a flow through share (FTS) scheme.

Reports from Australian Bureau of Statistics indicate that mineral exploration activity in Queensland fell by 38% during the 2008-09 financial year.

Over the same period, greenfield exploration investments across the state collapsed 61% to just $16.5 million, the lowest quarterly total since the 2007 March quarter.

According to Roche, the global financial crisis has increased the shortfall in new exploration activity in Queensland.

“Exploration is essential if the governments are serious about replacing a number of world-class mining operations in Queensland that are nearing their end of their commercial lives,” he said in a statement.

“Analysts agree that the supply of new investment capital is not going to improve quickly, it is urgent that exploration is stimulated through the tax system.”

Under existing taxation arrangements, junior exploration companies with little or no taxable income are unable to deduct exploration expenses immediately.

The vast majority of junior explorers do not have an alternative income stream, so their costs are pushed higher.

This results in lower levels of activity and fewer substantive new discoveries and projects.

According to Roche, a FTS scheme would allow unusable corporate tax deductions to be transferred through to a junior company’s Australian shareholders

“Eligible shareholders would then be entitled to use ‘exploration tax credits’ to offset their tax liabilities, thereby maintaining investment momentum,” he said.

“This has been demonstrated successfully in Canada for more than a decade.

In May, the QRC and nine other resource sector bodies presented the Federal Government with an economic study forecasting that 4000 new exploration jobs would be created in Queensland and Western Australia if an FTS scheme was introduced.

The report provided strong evidence that a scheme would result in increased exploration expenditure by 10 to 30%.

“The Queensland Government’s election commitment to become the greenfield exploration capital of Australia by 2020 will stay under a cloud as long as this comparatively modest form of economic stimulus is kept under covers at the Federal Treasury,” Roche said.

PDN’s cashed up and the question is who are they going to buy…. I guess the punters think that it will be TOE/DYL. But I wonder if BMN isn’t the logical one that they could swallow cheaply and easily. But I also wouldn’t discount EXT as a target. EXT is well advanced and has a market cap of $2.288m and that could be within PDN’s range as a JV. If you don’t know about EXT have a read they have a huge amount of uranium. ~300m pounds.

But PDN must also get a bit uneasy when they look to their surrounds… hence BMN would be a snap at $252m and they also have a lot of uranium at nice grades…..

I reckon they could take DYL-TOE and BMN with one huge move that would make them the premier Uranium company by resource size. If they get a JV with EXT as well then game on for Australia.

TOE=Reptile
BMN may have as much uranium as EXT at a slightly lower grade… time will tell

What a lovely virtuoso performance by this Aussie achiever. I’ve been in it for years. It was talked down by the Sky Business gurus and written of by many… now it looks like it is going to be one of the world’s biggest uranium miners…

I’ve kept the faith and only have taken profits once and that was to buy BMN. Why? Have a look at where they are and what they have got…. another EXT in the making… TOE looks like it will be charging soon… Aussies RULE.

Cameco Profit Beats Estimates on Higher Uranium Sales
By Christopher Donville

Aug. 12 (Bloomberg) — Cameco Corp., the world’s second- largest uranium miner, reported second-quarter profit that beat analysts’ estimates because of rising sales volumes of the raw material in nuclear fuel.

Net income increased 65 percent to C$247 million ($225 million), or 63 cents a share, from C$150 million, or 42 cents, a year earlier, Saskatoon, Saskatchewan-based Cameco said today in a statement. Excluding a C$108 million gain on financial instruments and other one-time items, earnings were 36 cents a share, topping the 25-cent average estimate of 10 analysts surveyed by Bloomberg.

Chief Executive Officer Jerry Grandey is seeking to expand uranium output from mines in Canada, the U.S. and Kazakhstan amid projections of increasing demand for nuclear energy. Second-quarter uranium sales rose 35 percent to 8.5 million pounds, more than the 6 million expected by Orest Wowkodaw, an analyst at Canaccord Adams Inc. in Toronto.

“The market will like these results, especially the increased uranium sales guidance,” Wowkodaw said today in a telephone interview.

Cameco rose 48 cents, or 1.6 percent, to C$29.86 at 10:07 a.m. in Toronto Stock Exchange trading. The shares gained 40 percent this year through yesterday.

Sales of uranium oxide this year will be 34 to 36 million pounds, more than a previous forecast of 32 to 34 million, because of new supply commitments, Cameco said.

Read the article