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April 21st, 2015

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Innovation and Efficiency Drive U.S. Oil Supply and Demand
Frank Holmes  Apr 01  

Oil Market Update
Clive Maund  Mar 29  

Still Another Update on Oil
Ferdinand E. Banks  Mar 24  

Oil Market Update
Clive Maund  Feb 24  

A Daily Energy Economics Dozen
Ferdinand E. Banks  Feb 18  

»» more editorials in the archives

market data


Ux U3O8 Price (Uranium)April 15th, 2015
$39.00 -$0.25 www.uxc.com

»View Commitment of Traders.

expert analysis & newsletter briefs

Royal Dutch Shell Plc

"Royal Dutch Shell Plc's acquisition last week of BG Group Plc was notable for many reasons, not the least of which was the all-time record set for the corporate buyout of an exploration and development company. . .the addition of BG's 7 Mt/year is creating a veritable liquefied natural gas behemoth with nearly double Exxon Mobil Corp.'s market share." (4/14/15) - Pavel Molchanov, Raymond James

Galaxy Resources Ltd.

"Galaxy Resources Ltd. recently sold its operating asset in China, the Jiangsu lithium carbonate plant, to Sichuan Tianqi Lithium Industries Inc. for an enterprise value of $173.2M. This has significantly improved the company's balance sheet and provides it with considerable financial muscle to advance its Sal de Vida lithium and potash project." (4/14/15) - RB Milestone Group

Energy Fuels Inc.

"It's been three months since the merger of Energy Fuels Inc. and Uranerz Energy was announced. The deal is transformational in that it creates multiple avenues of producing returns for shareholders. Energy Fuels had been a conventional uranium miner and producer. Adding Uranerz will give it an in-situ recovery (ISR) method of production and therefore the flexibility to fluctuate between the two methods as needed. ISR also provides a low-cost option should the uranium price flatten or trend downward. And the merger also provides the new company with additional cash flow to reinvest into larger uranium conventional projects should the uranium price reach the $5560/lb range. . .Energy Fuels has contracts beyond this year. I believe the contracts do get a little smaller as we go out, but Energy Fuel's goal is to produce only from its conventional mining methods what it needs to deliver into those contracts. Should the uranium spot price rise above $50/lb, Energy Fuels would be able to increase production. On the other hand, should the spot price remain flat, we'd expect the company to produce just enough to meet contracts, with perhaps a slight amount beyond that to provide a cushion. The 75 Klb is just it finishing up the Pinenut mine in Arizona. Next year, Energy Fuels will switch to its Canyon mine in Arizona, which is expected to produce the 700 Klb it will need for next year's deliveries. . .we're maintaining a Buy rating and an $11 target price for Energy Fuels until we get further guidance. My overall view is that the Uranerz acquisition will result in a stronger, better company. Its current valuation is based solely on Energy Fuels, so there is upside for the combined company, even though reworking the numbers may or may not result in a higher valuation after the fact. . .given the potential for price shocks, up or down, having flexibility in its production schedule and investment decisions is a significant differentiator for Energy Fuels. It stands apart from the other uranium juniors that have solely conventional or ISR production." (4/14/15) - The Mining Report Interview with Joe Reagor

Energy Fuels Inc.

"It's been three months since the merger of Energy Fuels Inc. and Uranerz Energy was announced. The deal is transformational in that it creates multiple avenues of producing returns for shareholders. Energy Fuels had been a conventional uranium miner and producer. Adding Uranerz will give it an in-situ recovery (ISR) method of production and therefore the flexibility to fluctuate between the two methods as needed. ISR also provides a low-cost option should the uranium price flatten or trend downward. And the merger also provides the new company with additional cash flow to reinvest into larger uranium conventional projects should the uranium price reach the $5560/lb range. . .Energy Fuels has contracts beyond this year. I believe the contracts do get a little smaller as we go out, but Energy Fuel's goal is to produce only from its conventional mining methods what it needs to deliver into those contracts. Should the uranium spot price rise above $50/lb, Energy Fuels would be able to increase production. On the other hand, should the spot price remain flat, we'd expect the company to produce just enough to meet contracts, with perhaps a slight amount beyond that to provide a cushion. The 75 Klb is just it finishing up the Pinenut mine in Arizona. Next year, Energy Fuels will switch to its Canyon mine in Arizona, which is expected to produce the 700 Klb it will need for next year's deliveries. . .we're maintaining a Buy rating and an $11 target price for Energy Fuels until we get further guidance. My overall view is that the Uranerz acquisition will result in a stronger, better company. Its current valuation is based solely on Energy Fuels, so there is upside for the combined company, even though reworking the numbers may or may not result in a higher valuation after the fact. . .given the potential for price shocks, up or down, having flexibility in its production schedule and investment decisions is a significant differentiator for Energy Fuels. It stands apart from the other uranium juniors that have solely conventional or ISR production." (4/14/15) - The Mining Report Interview with Joe Reagor

Uranerz Energy Corp.

"It's been three months since the merger of Uranerz Energy Corp. and Energy Fuels was announced. The deal is transformational in that it creates multiple avenues of producing returns for shareholders. Energy Fuels had been a conventional uranium miner and producer. Adding Uranerz will give it an in-situ recovery (ISR) method of production and therefore the flexibility to fluctuate between the two methods as needed. ISR also provides a low-cost option should the uranium price flatten or trend downward. And the merger also provides the new company with additional cash flow to reinvest into larger uranium conventional projects should the uranium price reach the $5560/lb range. . .Uranerz makes the new company better by providing a lower-cost production footprint. Nichols Ranch will be an ISR producer and is expected to have significantly lower operating costs than those of conventional mines such as Canyon. Uranerz is also bringing some contracts that Energy Fuels can deliver into. Plus, Uranerz's additional ISR projects give Energy Fuels additional future production flexibility." (4/14/15) - The Mining Report Interview with Joe Reagor


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The Energy Report

Phil Flynn
http://www.pricegroup.com/
pflynn&pricegroup.com


The Energy Report Monday April 20, 2014

China Shot

Oil prices rally after China cut interest rates and U.S. Rig counts continue to fall. This comes after hedge funds put on the biggest bull position in 8 months.

China made a big move aggressively cutting interest rates which will increase their demand for oil. The cut was one quarter of a percentage point and the largest cut since the financial crisis. The move comes after the China bank tried to clamp down on margin trading and tried to encourage short selling of stocks. The China seemingly contradictory moves may be a signal of larger problems in the Chinese economy and banking system. That may limit some upward momentum as U.S. Oil output is again coming into question as U.S. Rig counts fell for a record 19 straight weeks. The fall though was less than the week before as oil rigs declined by 26 rigs to 734, that means oil rig counts have fallen by 55 percent since the peak last October.

Natural gas rigs also fell by 8 rigs to 217.

Oil hedge funds are starting to see things my way. We were ahead of the curve calling for a new era of low gas and oil prices while many were still bullish. Then after the historic break in price we called the low at 44 and became bullish. When prices collapsed there were consequences and we will see those consequences play out. We have seen oil rebound over 30 percent from the lows and we see signs of lower U.S. Production and signs of greater demand. Refiners in the U.S. are running at a record pace for this time of year. We think low prices are curing low prices but we also are seeing more supply risk as well.

There is a substantial risk of loss in trading futures and options.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Phil is one of the world's leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil's market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.

PLACING CONTINGENT ORDERS SUCH AS "STOP LOSS" OR "STOP LIMIT" ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Contact Phil at 800-935-6487 or pflynn&pricegroup.com.



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