QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING – 30 September 2012
2012 Supply/Demand Analysis (2nd Edition)
"Preliminary results show that the effects of Fukushima have had a disproportionately greater negative impact on primary uranium supply relative to uranium demand. While Paladin’s analysis suggests that annual demand by 2020 is only 8% lower than pre-Fukushima scenarios, low uranium prices and a difficult financing environment have generally stifled and delayed the development of new uranium rojects, making what was already a precarious situation worse.
As a result, primary supply is estimated to be up to 25% lower in 2020 than would have otherwise been expected if the pre-Fukushima uranium price trend had been maintained. In summary, this market analysis confirms a supply industry in crisis in which production is unable to meet emerging requirements in the short to medium term.
The supply crunch is spurred by a confluence of factors detailed in the study, including the aging of historical mines, the end of the US-Russia HEU agreement, a limited number of new feasible mining projects, lack of economic incentives to invest in new mines and higher mining and development costs confronting the industry."
Quite Interesting for PEN in my eye :-)
PEN Price at posting:
3.8¢ Sentiment: None Disclosure: Held
