onwards and upwards

Below article from Bloombergs news services.

It seems onwards and upwards, Gus and co, once again timed to perfection. The cream will come when OZD falls below parity with USD.Few wise men are predicting this also to occur some time 2012. Could be in for a double whammy.

Go the Pen!

"Uranium May Rise to $75 a Pound in 2012 After Fukushima, Uranium One Says

By Bloomberg News - May 13, 2011 5:42 PM GMT+0930
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Uranium prices may trade from $70 to $75 a pound next year after problems at Japan?s Fukushima Dai- Ichi nuclear power plant are resolved, Fletcher Newton, a vice president at Uranium One Inc. (UUU), said in Beijing.

The price of uranium oxide concentrate for immediate delivery will be from $55 to $65 a pound this year, Newton told Bloomberg before a conference today.

?You simply can?t build a uranium mine at these prices,? Newton said. When Japan starts to experience a power shortage this summer ?the world will look at it and realize that the issues we face are the same as before? in meeting nuclear power requirements. New uranium mines need a price of $85 a pound before they are economically viable, Newton said.

The spot price for the nuclear fuel has fallen about 15 percent since Tokyo Electric Power Co.?s Fukushima Dai-Ichi atomic power station was damaged on March 11 by an earthquake and tsunami, sparking the worst nuclear crisis in 25 years. Prices gained $1.25 to $56.50 a pound in the seven days through May 9, based on the most competitive offer tracked by Roswell, Georgia-based Ux Consulting Co. on May 10.

Canada-based Uranium One, controlled by Russia?s state- owned nuclear company Rosatom Corp., has had talks about entering the Chinese market, according to Newton. ?Nothing is concrete about those talks,? he said.

China Demand

China?s ?demand growth puts a floor on uranium prices and has helped to drive prices higher,? Jonathan Hinze, vice president at Ux Consulting, told the conference. ?China news can swing spot prices rapidly."

China, building more reactors than any other country, stopped approving new plants ??until safety and improved long- term development plans are cleared,?? according to a March 16 statement by the State Council. The country has approved 34 reactors, of which 26 are under construction, according to the World Nuclear Association?s website.

Small mines will have to close if uranium falls below $50 a pound and the ??most-desired?? level is $65 to $70 a pounds, Zhou Zhenxing, chairman of the uranium unit at China Guangdong Nuclear Power Group Co., the nation?s second-largest reactor builder, said at the conference today.

China Guangdong Nuclear?s uranium mines in the northwestern province of Xinjiang and Guangdong in the south may start output in 2013 and have a capacity of 500 metric tons a year each, Zhou said.

The nation?s proven and estimated uranium resources are currently 10th in the world, according to Zhou. ??The scale of nuclear power development will be world number one, so we need to secure more uranium supplies,? he said.

Kazakhstan and Africa will supply 70 percent of world uranium this decade, Uranium One?s Newton said. The company has stakes in mines in Kazakhstan and the U.S., according to its website. "