article on u prices

Uranium spot price to rise 22%: RCR

September 29, 2006 - 5:19PM

The spot price of uranium will reach $US65 ($A87) a pound by May 2007, an increase of 22 per cent from the current spot price, Resource Capital Research says.

The current spot uranium price is $US53.25 a pound, which is up 33 per cent from $US40.00 three months ago.

According to the equity research firm's quarterly research report, the price will also increase a further 65 per cent from the current price to $US88 a pound by September 2008.

The prices have been revised upwards from the June uranium quarterly, which indicated a uranium price increase of 11 per cent to $US54 a pound in 2006 and a rise of eight per cent to $US60 a pound by May 2007.

There has been a spate of initial public offerings in uranium producers in Australia, as demand increases in line with diminishing above-ground supply and a push for cleaner fuels.