why its weak, page-10

Hey ho, all you radioactive rollers, some news. The decline in the spot U price is substantially a result of panic buying by existing producers in late 2007 as prices rocketed. Those will not be worked off till late 08. Also the big Cameco plant in Canada, which produces 30% of all the worlds processed uranium, is shut down for repair (!) till 4Q. Cameco seem to have all the luck dont they. Uranium for processing is building up in storage there. Buyers are cutting back on purchases because it is hard to get it processed. Both these are relatively short term things. Over inside this year.
REMEMBER that all these new plants will not come into action next week. It will take time, years. So will building BMN> Important to try to match it up a bit. Come on too early could get burnt for a while? But they do like to stock up early.
A lot of existing miners and a few new ones are running the plants flat out and selling into a quieter market just now. Result? Falling prices in the short term.
On the other hand the Chinese Government is planning strategic stockpiles of all minerals and metals which include uranium. Expect some price recovery in 2nd half 08 biased towards Q4. Such is the oil from the pundits OS.

Question-if Oz is to supply upwards of 25% of world uranium supply, why do'nt we put in a processing plant here? Its simple logic. Value add. Not labour intensive. A no brainer. Somewhere along the Ghan railway line? Away from the NIMBYS. The biggest deposits are near it.


How about nuclear powered locos? The Ghan gould go into near space orbit on the way. Now that would be some hauler. Adelaide to Darwin in two hours? Need biiig buffers.

Want the good oil? Who you gonna call? Hightraxxxx....you can relax now.