Uranerz Energy (NYSEMKT:URZ) -11.2% AH after announcing plans for a public offering of as many as 8M units at $1.25 each.
URZ says proceeds from the offering will be used to continue development of mining facilities, including wellfields, at its Nichols Ranch ISR uranium project, as well as for working capital and other general corporate purposes.
URZ says it made its first uranium-loaded resin delivery to Cameco's Smith Ranch uranium processing facilities in mid-June, and expects to reach commercial production in Q3 and start making deliveries to its nuclear utilities customers.
USEC (USU +25.5%) extends yesterday's huge gains following news of $2.5M in new funding from the Department of Energy; shares have dropped off early morning gains of as much as 65% but have more than tripled since the announcement.
A Seeking Alpha blog says the $2.5M influx moves the needle very little in the context of refinancing $530M of bonds outstanding, and that the stock soon will revert to fundamental valuation; post-reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.
RBC believes Japanese reactor restarts could result in a recovery in uranium prices to $40/lb. in late 2014 or early 2015, but thinks the price is likely to be capped at that level until the market begins to tighten; the firm predicts only four Japanese reactors will restart this year with 28 - slightly more than half the current fleet - eventually restarting.
Spot prices recently dropped below $30 as supply remains well ahead of demand since the Fukushima disaster.
RBC cuts its price target for industry leader Cameco (CCJ -2.5%), seeing shares rangebound between $18-$27.
Uranium prices are forecast to rise more than 40% by year's end as Japanese power plants restart nuclear reactors that have been shut down since the March 2011 Fukushima disaster, and analysts say the rebound in uranium demand may fuel takeovers as buyers try to get ahead of rising prices.
DNN would make an attractive target for someone looking to gain access to Canada’s Athabasca Basin, home to the world’s richest high-grade uranium; a Raymond James analyst thinks Rio Tinto may be particularly interested.
Cantor Fitgerald thinks DNN and Fission could be targets of Cameco (CCJ +0.8%), which has been building up cash and last month sold a stake in a power plant for C$450M.
Investors in uranium companies are not excited by the U.S. government's plans for $8.3B in nuclear loan guarantees, as the amount is viewed as insufficient and the overall loan program is seen as fizzling, according to a NY Times report.
Funds are coming far later than anticipated and may effectively end a program that Congress established in 2005 to jump-start a new generation of nuclear plants, NYT writes; at one point, the program was expected to support more than $50B in loans for nuclear projects.
USEC (USU -10.8%) is slammed despite reporting another $16.7M in government obligated funds toward development of the American Centrifuge project.
Other uranium providers are lower too: URG -4.1%, DNN -3.7%, URRE -3.7%, UEC -3.5%, URZ -3.2%, CCJ -1%.
Uranerz Energy Corp is an exploration stage company engaged in the acquisition, exploration and, if warranted, development of uranium properties. It is also focused on constructing an in-situ recovery uranium facility.