Manhattan Corporation has two main topics on its agenda for the rest of the year: enlarge the resource base on its existing uranium projects, and, separately, to acquire an operation of new advanced uranium . Pontoon Drilling on the Manhattan Project in Western Australia will continue, but do not be surprise if the company runs all acquisitive later this year.
“It’s a very good attack on both fronts for us,” the office of President Alan Eggers said mine. Society will launch a major program of drilling at Ponton build its inventory of resources, starting exploratory studies and complete the preliminary test work on its uranium deposits. “Ponton is growing rapidly, with ongoing drilling,” Eggers said, noting that 60,000 meters were holes drilled in 1000 at an estimated cost of A $ 4 million.
“This hole will line up the resources of uranium JORC and lead to scoping studies prepared for the mine development potential in the next two to three years,” he says. Manhattan plans to use low cost technology in situ leaching of operating. Unlike conventional mining method involves pumping a solution through small areas of drilling so that the extract liquid and leaching to recover uranium, Eggers said.
Manhattan considered a minimum resource base of over 50 million pounds of uranium oxide is essential for the head in any mine development in order to produce five million pounds of uranium oxide a year, ” he said. This level of production level will enable the company to win contracts in the medium term, up to seven years, he said, and higher selling prices that go with it.
The company is considering acquisition opportunities in Australia, but also looking abroad too, for Canada, Namibia, Tanzania and Botswana. Eggers likes Namibia in particular, describing it as “a competence to work in the right.” Any acquisition will probably need additional funding, possibly through raising equity.
However, Eggers has also commented that “There is still some uncertainty in financial markets, making it very difficult to hire purchases and adjust the value. Share price the company has done well since the merger in mid 2009, but he rectified with the broader market, fell by more than 30 cents over the last two months. “Manhattan merged with uranium Explorer Limited Uranio colleagues in mid-2009.
Recent trades of Manhattan have been involved in at about $ 1.30 per share level, some way off the A $ 1.55 which was reached in early February.
Although most products are experiencing a turnaround from the evils of the economic crisis last year, the spot price of uranium have been somewhat sclerotic in recent months. As Eggers is concerned, there is much uncertainty surrounding the uranium market. Spot prices are currently around U.S. $ 42 per pound, while the medium-term contracts are U.S. $ 75, Eggers said.
“In early 2007, the uranium price was $ 140 U.S. per pound, then fell $ US40 a pound by late 2008, he elaborated. “After the collapse of Lehman Brothers there was some forced sales, and the stress of the sale of uranium a negative impact on the cash market.” But he added that he expects to see the market will stabilize this year and that prices will start increasing again.
The need for uranium to fuel the market for nuclear energy that will strengthen it counts. To support this argument, he noted that the Australian government and governments of other countries around the world are pushing for alternatives to coal-fired energy. He also noted demand for the medical industry and aerospace.
“In the United States, Great Britain, Western and Eastern Europe, China and India, there is a shortage of uranium, as they grow rapidly installed capacity of nuclear energy,” he said. With a consumption of defeating the current production levels, Eggers predicted a 100 million pound per year deficit in 2013.
While Eggers is aware that nuclear energy will not be adopted as mainstream overnight, he is confident that government pressure on emissions will continue to support the market, and eventually lead to price increases considerable. At this time Manhattan Corporation might be in a position of some strength to capitalize on growing demand.
DOJ urges appeals court ruling delayed oil spill
WASHINGTON - The Justice Department on Friday urged a federal appeals court overturning a court ruling of a drilling moratorium in the Gulf late. . . Read more »
South Africa wants to Iron-Ore Trade Deal transparent reference price
South Africa wants iron ore trade on futures exchanges to create a benchmark for the most transparent price offers, a responsibility the most important mining country, said Monday. . . Read more »