pdn uranium keeps growing, page-7

please note, the margin borrowers are panicking IMHO.....as usual..........
now read this extract published by citigroup TODAY, BHP had a similar ann.
patience is bitter but its fruit is very very sweet.....

now the extract...

Citigroup Global Markets | Equity Research
Australia/NZ Investment Daily
6 July 2007 | 10 pages
Top Calls
Uranium Outlook ¡X Mutation to Uranium Utopia
Remaining above US$100/lb ¡X We expect prices to remain above US$100/lb for the next three years. p2
Telecom Corporation of New Zealand Ltd (TEL.NZ) ¡X Operational separation is the default track unless ¡K¡K
The door remains ajar for structural separation ¡X The Minister of Communications has confirmed he intends to proceed with operational separation unless his discussion with TEL on structural separation over the next two months can demonstrate a better way forward. This is a reiteration of his previous stance. We maintain our BUY recommendation. p2
Tishman Speyer Office Fund (TSO.AX) ¡X InSpeyer The NAV
Upgrade to Buy ¡V TSO is now trading at a ~24% discount to our revised $3.10 NAV. Even though the earnings profile is poor over the next three years, growth in FY11 and FY12 results in an impressive 5.7% 5-year DPU CAGR, the highest CAGR of Australian listed office peers. We upgrade our rating to Buy, Medium Risk. p3
Rakon Ltd (RAK.NZ) ¡X CDMA Comes Into The Fray
CDMA GPS Handsets and EPS Roll Forward Lift Target Price to $5.22 ¡X Our forecasts now include Rakon taking a share of the GPS enabled CDMA handset market from FY09. Based on our scenario analysis, this adds 1c to eps on a probability weighted average basis and 25 cents to our TP. We have also rolled forward our eps for 1Q09- this added 70 cents to our target price. Our rating is upgraded to Hold/High Risk. p3
Climate Change: Where Business Should Lead ¡X Perspective From Committee For Sydney Forum
Key Takeaways ¡X Corporate action may be leading policy; supply chain influences can drive wider change; adaptation to physical risks is too slow; Australian government focus is on clean coal technology; wind and renewables may require additional incentives. p4
Contents
Companies in this issue:
page
Rakon Ltd (RAK.NZ)
3
Telecom Corporation of New Zealand Ltd (TEL.NZ)
2
Tishman Speyer Office Fund (TSO.AX)
3
TrustPower Ltd (TPW.NZ)
5
Vector Ltd (VCT.NZ)
6
Other topics:
BHP Billiton & Rio Tinto
4
Climate Change: Where Business Should Lead
4
Company Insights
5
Uranium Outlook
2
See Appendix A-1 for Analyst Certification and important disclosures.
Australia/NZ Investment Daily ¡X 6 July 2007
2 Citigroup Global Markets | Equity Research
Uranium Outlook
Alan Heap
+61-2-8225-4853
Mutation to Uranium Utopia
[email protected]
ƒæ Remaining above US$100/lb ¡XWe expect prices to remain above US$100/lb for the next three years.
ƒæ The Nuclear Recharge ¡X Nuclear power capacity is increasing, mainly in China, India and Russia as a response to strong power demand, green house gas emission concerns and energy security issues. 100mW is under construction and planned, a 25% increase. Nuclear generating costs are 30-50% lower than gas and coal and even less when the cost of CO2 abatement is included. Operating costs are comparatively insensitive to uranium prices: a doubling of uranium prices increases fuel costs by a quarter and total costs by ~6%.
ƒæ A Slow Supply Response ¡X Mine supply is not responding immediately and is expected to be stable until 2010. Secondary supply is diminishing and the HEU program has only 6 more years and will not be renewed. A lack of conversation and enrichment capacity is a potential constraint on supply, especially from recycled sources.
ƒæ Long term US$25/lb ¡X Barriers to entry for mine production are relatively low. Exploration and mine development are not particularly complex. Reserves will increase with higher prices and increased exploration activity. Political barriers are being dismantled.
Figure 1. Uranium Forecasts (US$/lbU308)
2006
2007e
2008e
2009e
2010e
2011e
2012e
LT ($ 2007)
48
120
130
110
80
60
50
25
Source: Citigroup Investment Research
Figure 2. Uranium Mine Supply & Demand