Ann: Namibian Prospectivity Analysis Identifies M, page-4

re: Ann: Namibian Prospectivity Analysis Iden... http://www.bdlive.co.za/business/mining/2013/08/29/uranium-price-to-bounce-back

The spot price of uranium oxide plunged to about $35 a pound this month, at which level estimates are that half of the world’s uranium producers are unprofitable. Despite this, uranium producers maintain that the underlying fundamentals of the sector remain positive. Deep Yellow MD Greg Cochran told Business Day the uranium spot price should be "deep in the $40s by the end of this year and I would be very surprised if the price does not stand around $60 a pound by the end of next year".

Mr Cochran said about 25-million pounds of uranium oxide had been sold this year on the spot market out of a supply of about 100-million pounds. "When you add up the impact of the lack of new mines because developers cannot raise funds; the restart of the reactors in Japan and end of the HEU programme, you are looking at a 250-million-pound cumulative deficit in uranium supply by 2020."