Morning all. Often all the talk about BHP is centered around ORE...

Morning all.

Often all the talk about BHP is centered around ORE but its interesting to also consider the Uranium side of this. There is an interesting article on the moneyweek website this week that mentions BHP.

http://www.moneyweek.com/investments/commodities/theres-only-one-way-for-this-commodity-to-go-00809.aspx

Following is a taste of the article:

The top producers, which make up nearly 90% of the market, produced about 110m lbs of uranium last year. So essentially, the industry needs to produce almost four times that to meet the estimated new demand through to 2018. On an annual basis, the industry will need to about double in size.

A sidelight to this is the fact that 63% of all uranium comes from just ten mines. This means that the global supply of uranium is susceptible to supply shocks. If one big mine floods or goes down for whatever reason, it'll make a big wave in the uranium market.