By Greg Peel

RBC Dominion Securities notes that global uranium mining stocks rallied 13% on average last week, spurring investors into believing that a uranium bull market will shortly be upon us once more. RBC also believes there will be a rally in the future, but doesn't believe its time has yet come. If spot price gains don't now back up share price gains, warns RBC, those share price gains may quickly disappear.

Unfortunately last week did indeed see a fall in the uranium spot price according to industry consultant TradeTech's price indicator, although only of US25c to US$52.50/lb and largely due to a lack of interest. Only three transactions were recorded last week totalling 200,000lbs of U3O8 equivalent. Traders are finding it difficult to be enthusiastic uranium market participants at present, suggests TradeTech, due to variations in delivery times and delivery locations across the globe as well as form (U3O8, UF6 etc).