dte reading

please absorb.....

Forecasting uranium demand is relatively easy compared to other commodities,
as reactors are used for base load power supply with little variation in operating
rates, and the long construction times allow demand to be forecast well into
next decade.
Something often overlooked though is the lead time for getting the yellowcake
through the conversion and enrichment process into the fuel rods that are used
by the reactors.
If you are looking to start up a reactor in 2015 (likely to be still in the planned
status at the moment) you would need to have the fuel rods on site by 2014
given the operating risk that they represent if not available. A 1 GW reactor
requires the equivalent of 2m/lbs of yellowcake to be on site for start-up.
The key constraint in the system at the moment is getting the material through
the conversion and enrichment process. Industry sources that we have spoken
to suggest this could take up to 3 years.
Given you would probably not want to disrupt the market by trying to buy all the
material at once and forcing the price higher, you would normally look to buy
the material over a number of years.
The key conclusion of this analysis is that even reactors only planned for startup
mid next decade need to be assessingI how they will source their uranium
over the next couple of years.