cherry waiting to be picked, page-25

Hi Grabs ...some more research for you...1000 reactors on their way mate!

Extract from reomir (BMN threader)

"Roughly 40,000 megawatts of nuclear capacity is now being built on four continents, with China accounting for a quarter of that total, well ahead of Russia and South Korea which are in second and third positions. The chart below shows that China will be second only to the US in terms of future capacity when projects at all phases are completed. China, however, is advancing so fast that by that time it will probably have overtaken the US. China has uranium reserves within its borders and it is aggressively lining up supplies in Central Asia, Africa and Australia to make up any shortfall. But this shortfall is large and growing. According to a recent Reuters story, China can supply only a third of the 10,000 metric tons of uranium annually required to meet its 2020 nuclear capacity target.

The World Nuclear Association says the world's measured uranium resources are sufficient to last 80 years at current usage rates, with the largest untapped deposits found in Australia, Kazakhstan, Russia and Canada. But just looking at China makes it clear that usage rates are soon to see a sizable increase. Nevertheless, worldwide uranium production is unlikely to increase until uranium prices increase. Uranium prices shot up to more than US$135 per pound in 2007, after the first new nuclear power projects began emerging, but subsequently slumped back down to US$40 a pound, as above-ground stockpiles flooded into the market. It should be noted, however, that contract prices are well above spot price so it is probably fairer to look at US$60/lb as being a better price indicator.

Looking forward, however, rising demand for nuclear power seems likely to produce rising prices for uranium. In fact, some analysts expect the uranium spot price to reach US$80 a pound by 2011. A very experienced analyst in London explains why he is bullish with the aid of a chart of new nuclear power plants going up around the world. No surprise, China was pockmarked with more sites than anywhere.

"Current world uranium usage is about 200 million pounds," he says "but current world production is only about 100 million pounds per year. This uranium supply deficit is getting filled by uranium from decommissioned nuclear weapons from the Cold War. That's ending. Uranium is in shortage, and it's getting worse every month. Thus, uranium mining is due for a future boom."

IMHO PEN is poised to be a HOT STOCK in early 2010 due to the expected timing of their production, their expected low OPEX and their extended resource soon to be JORC'ed. That uranium supplies will suddenly be in demand is a super bonus and dramatically de-risks the stock.

I would anticipate 10+ cents by July and that'll do nicely thank you. DYOR

Thanks to 'Reomir' on the BMN thread