re:todays age uranium miners prepare for a glowin Trader 10 posted this last night.......worth a repeat at this time I think....thankyou T10
"Nuclear resurgence boosts uranium stocks"
Barry FitzGerald
December 28, 2006
Other related coverage
URANIUM stocks are finishing the year with a flourish in response to soaring prices for the radioactive material.
Spot prices recently hit $US72 a pound, double the price at the start of the year and a 605 per cent increase on the December 2002 price of $US10.20 a pound.
The surge reflects the potential for near-term supply shortages as nuclear power is enjoying unprecedented acceptance because of its role in fighting global warming.
The Australian mining and exploration industry has responded with gusto. While there are just two listed uranium-only producers (ERA and Paladin), the number of companies that now claim to be involved in exploration is approaching 100.
Investors have joined the nuclear party by driving equity values sharply higher. ERA, at its closing price yesterday of $19.94, is sporting a 100 per cent gain for the year. Paladin's $8.25 close gives it a 325 per cent gain.
Dozens of explorers and would-be developers have done better still. They include Alliance Resources (up 1046 per cent in the year to date), Nova Energy (up 333 per cent), PepinNini (up 379 per cent), Summit (up 373 per cent) and Compass (up 311 per cent). Sydney-based equity research group Resource Capital Research (RCR) has forecast that the uranium price could reach $US90 a pound by mid-2007, an increase of 25 per cent on the current spot price, and $US115 a pound by 2008, an increase of 59 per cent on the spot price.
RCR analyst John Wilson, in his December-quarter review of the uranium sector, said there had been a dramatic increase between May and November in the number of planned and proposed nuclear power plants, with the total increasing by 70 reactors to 223.
This has increased pressure for new mines to fill the perceived widening of the gap between new mine supply and consumption.
Some analysts predict mine supply plus inventory might not be enough to meet global demand soon.
Also driving the uranium price higher was the shock flooding in October of the Cigar Lake uranium project in Canada.
The World Nuclear Association has forecast that uranium demand could rise from about 65,000 tonnes in 2006 to 78,000 tonnes in 2015 and 111,000 tonnes in 2030.
Australia is poised to cash in on that growth, with BHP Billiton's Olympic Dam project in South Australia planning to at least triple annual production to 15,000 tonnes.
And subject to state Labor governments in Western Australia and Queensland lifting current bans on uranium mining, the number of Australian mines could easily double before 2010.
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- looks like a retrace back to 1.70 ish imo
looks like a retrace back to 1.70 ish imo, page-25
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