Ura­nium price re­cov­ers af­ter nu­clear cri­sis

Townsville Bulletin - - Investor -

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.’’

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