The important difference is, unlike the Megatons to Megawatts...

The important difference is, unlike the Megatons to Megawatts program, the quantities supplied under the new contract will come from Russia's commercial enrichment activities rather than from downblending of excess Russian weapons material. This means this will be no change of the shortfall of the uranium supply.

"The fundamentals of the current uranium market are clear ? there is a significant gap between current supply and demand. Rising future demand will only amplify the shortfall.

The top 5 uranium producers, which make up almost 90% of the uranium supply market, only produced 110 million pounds of uranium in 2010. In other words, uranium producers need to produce nearly four times their current amount just to meet estimated new demand. The new supply will have to come from somewhere, or the price of the existing supply will need to increase dramatically to clear the market. In either event, shares of the uranium mining stocks would likely increase significantly from their current levels.

The bottom line is that even in the wake of the Japanese catastrophe uranium?s supply crunch lives on."

--Small Cap Investor Daily April 14, 2011 3:39pm EDT