u308 is the future, page-10

Thanks for the reasoning behind the post,

I would have to disagree with the idea that the entire sector will rebound as one though.

Whilst I agree market sentiment on U will obviously rebound as a whole, Individual companies which are still explorers or years away from production are in my opinion far more susceptible to a range of factors including most importantly sovereign risk, project delays due to current sentiment and geographical disadvantage of distance of supply from demand.

ASX companies with onshore uranium projects are at risk of strong anti-nuclear sentiment supported by some state governments and as far as I'm aware by the current federal government. Whilst this will delay any potential projects onshore, offshore risks apply with countries like Germany, Italy, Spain etc. vowing to stop their nuclear programs.

I believe this won't have an overly big impact on the Uranium Industry as they account for minimal future demand and it probably won't last - politicians are very irrational after all. It will however cause further delays to potential onshore projects which affect a majority of ASX listed U companies.

What this creates is a window of opportunity for producers or soon-to-be producers to fill contracts for future supply of Uranium to countries which will need it most, including China, America, India and probably Japan. These contracts will be filled by companies with a proximity advantage and/or a production advantage (primarily timing based).

For this reason, I 100% agree that Peninsula Energy is in a far, far, far better position then most if not all ASX listed Uranium companies who aren't currently producing. And this only stands to get better as the U price recovers.

By 2013 PEN will be well a player whilst other companies may still be in the application and approval phase and probably in need of capital, giving players another advantage (the ability to take key stakes in cash-hungry U companies with promising potential).

All in my opinion of course