Uranium prices finally succumbed to pressure last week, with TradeTech’s spot indicator falling back down to the $20/lb mark after seven consecutive weekly gains.
While TradeTech’s spot indicator has been on the upward trajectory for weeks, it met a considerable amount of resistance at $20 per lb., before finally climbing above that point. Now; however, $20 per lb is returning as a level of resistance.
Last week, TradeTech’s weekly spot price indicator fell by $0.35 to $20.00 per lb, with buying interest evaporating when sellers pushed for prices above $20. According to TradeTech, seven spot transactions took place last week, totaling 700,000 lbs U3O8 equivalent. There were no deals recorded in the term markets and therefore term prices were left unchanged.
In company news, embattled uranium miner Paladin Energy has been thrown a lifeline with the company securing an additional $40-million in additional debt from Deutsche Bank. Under the agreements, Deutsche Bank would acquire an existing $20-million revolving credit facility from Nedbank and would increase this to $60-million. Under the terms of the Deutsche Bank facility, Paladin subsidiary Langer Heinrich Uranium could draw down up to $45-million for its working capital while Paladin Finance and Paladin Energy will be able to draw up to $15 million. this new facility will have a term of 12 months.
Meanwhile, Paladin will delist from the TSX at the close of business on August 10. The delisting is a result of Paladin failing to meet the TSX’s continued listing requirements. Paladin told its shareholders that it would seek to transfer the TSX register to the ASX.