Before we go believing all the headlines about massive over...

Before we go believing all the headlines about massive over supply, changes to supply and demand fundamentals etc stemming from the nuclear summit, I think we should pause for a minute and consider the following:

1. Whilst there were a number of pledges by various countries they are pledges not binding enforceable comittments, there is some water to go under the bridge before these "pledges" translate into on market supply of fuel capable of use in nuclear reactors. What was the quid pro quo offered up in return ? Are these pledges conditional ? Will these conditions be met ? I question how much uranium will actually find its way to the states in reality once the feel good factor of the summit subsides and nations take a second look at issues of security etc and what they think they might get or want to get in return. Deals between nations are seldom a one way street they involve diplomacy and trade offs and this can take time - I question whether mooted pledges and / or time frames will be met.

2. What is the cost of converting highly enriched uranium into fuel capable of use in power plants (I don't know the answer by the way) but I suspect that it might not be as simplistci (and therefore cheap) as you might imagine. Perhaps if you are in need of nuclear fuel you might be better served by buying yellow cake from source as a straight commercial deal as opposed to a diplomatic arrangement with all the attendant complications that can carry.

3. I think I read somewhere reference to there being about 1200t of highly enriched uranium "floating" around the planet. Now, lets be clear if that were processed into usable fuel for power stations tomorrow - we would indeed have a major shift in supply and demand fundamentals in the U market. But that is not reality.

I can tell you one thing for certain, there are going to be some countries who will not be parting with their stockpiles anytime soon - Israel for one. This is a quote from the speech this week in Jerusalem, by Israeli Prime Minister Benjamin Netanyahu spoke at the Holocaust Martyrs and Heroes Remembrance Day ceremony:

"Irans leaders race to develop nuclear weapons and they openly state their desire to destroy Israel. But in the face of these repeated statements to wipe the Jewish state off the face of the earth, in the best case we hear a weak protest which is also fading away.

The required firm protest is not heard not a sharp condemnation, not a cry of warning. The world continues on as usual and there are even those who direct their criticism at us, against Israel.

Today, 65 years after the Holocaust, we must say in all honesty that what is so upsetting is the lack of any kind of opposition. The world gradually accepts Irans statements of destruction against Israel and we still do not see the necessary international determination to stop Iran from arming itself.

But if we learned anything from the lessons of the Holocaust it is that we must not remain silent and be deterred in the face of evil. I call on all enlightened countries to rise up and forcefully and firmly condemn Irans destructive intentions and to act with genuine determination to stop it from acquiring nuclear weapons.

These are the three lessons of the Holocaust: fight evil, teach good deeds and fortify your strength."

So for all the doomsayers that would have that all U explorers are doomed n the back of this. lets pause and bring some sanity to the table.