news article worth reading, page-22

The recycling of uranium is not a new technology. In fact, France have been doing it for years. The US and a few other countries also have the know how on how to do it but restrict its use due to nuclear proliferation issues.

The reason why this announcement by China has not had any impact on the uranium price is because China will not be able to implement this newly 'learned' technology any time soon and definitely not before the expected uranium demand supply imbalance in 2014-2015.

The other reason is due to costs. Recycling uranium is an expensive technology and based on the technology available today, is unlikely to replace the use of conventional nuclear plants using normal enriched uranium (as opposed to recycled uranium). It is currently used concurrently with normal nuclear plants in most countries that have the technological know-how.

This 'new' technology will however impact the uranium price in the longer term but probably only after 2030. I definitely do not intend to hold my PEN shares for that long so it shouldn't be a problem for me.