Good article flyboy. Along with the usual sweeping statement s about looming supply defecit and developing economies requiring nuclear power there are som other interesting tidbits like this that bode well for a near term bounce in the spot price;
"Seasonality also favors uranium exposure today. Over the last 10 years, uranium spot prices have dropped on average $4/lb during the third quarter (Q3) but have rebounded by at least that amount in Q4, which is the strongest quarter of the year. This is often correlated with the annual WNA symposium, where many market participants sit down and hammer out new supply agreements. This year's conference is going to be held September 12–14 in London."
He's 100% correct about the decline this quarter. If the projected rebound of equal or greater amplitude to the drop come in I'll be quite delighted in the next few months.
"So, for these reasons we think prices are poised to turn here. We forecast prices to average above $60/lb in 2013 and north of $70/lb in 2014 and 2015 before settling to $70/lb in the long-term."
This seems like a fairly level headed prediction for U pricing in the future too. The 80 - 100 numbers I see doing the rounds every now and again are just a little bit too rosey for me. Pricing into the $60 range and probably closer to $70 for L/T contract would be enough to have finciers keen next year which in reality is the time we will be looking for capex funding for the main construction. Despite company assertions of advanced capex funding agrement discussions my prediction is that this will happenmid to late 2013 when an advancing U spot and L/T price has both financiers and utilities looking to get invloved with near term producers such as Peninsular.
PEN Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
