Uranium price recovers after nuclear crisis
KEY Australian uranium stocks have regained about half of the ground they lost over the past fortnight as investors fled the sector due to the nuclear power plant crisis in Japan.
T h e d a y b e f o r e t h e s t r o nges t e a r t hquake i n Japan’s history struck on March 10, shares in Energy Resources of Australia Ltd ( ERA) finished at $ 9.43.
But they fell as low as $ 7.07 on March 15 as fears intensified about a full meltdown at the Fukushima nuclear plant.
Workers are still trying to stabilise the plant.
Shares in the Rio Tinto Ltdmajority owned miner had retraced to $ 8.56 yesterday, up 51 cents, or 6.34 per cent.
Paladin Energy Ltd was up 14 cents, or 3.77 per cent, at $ 3.85, still down from its March 10 finish of $ 4.83, but a n i mpr o v e me n t o n i t s March 15 close of $ 3.26.
Uranium explorer Extract Resources Ltd, which fell to a low during the Fukushima crisis of $ 6.50 on March 17, was up 20 cents, or 2.43 per cent, at $ 8.43.
Extract shares closed March 10 at $ 10.50.
‘‘ They obviously copped an absolute hammering and are coming back slightly, but it’s a sentiment driven thing,’’ CMC Markets analyst Ben Le Brun said.
‘‘ Most of what these companies have said in response to the crisis is that it is not going to effect long term demand for nuclear energy in China and so forth. But there’s a long way to go.’’