The following news item is a reminder of why I'm bullish on medium-to-long-term uranium prices. Some detractors of nuclear energy correctly point out that multiple billion dollar reactors are too expensive for many emerging countries to afford. However, state-owned and multinational corporations in Russia, Japan, South Korea, France, the U.S. and China are falling over themselves to provide turnkey solutions (including funding) for countries around the world.
England is being funded by France's EDF Energy and a consortium which includes Chinese investors. Russia and China are especially aggressive in looking to fund reactor projects. These projects are both profitable and prestige/power building to the sponsoring countries.
In the following example, Russia just announced it will fund a large portion of Hungry's nuclear ambitions....With funding sources drying up for fossil fuel power plants, especially coal-fired plants, nuclear should gain market share in coming decades.
News Item, Reuters, Feb 6, 2014: Hungary has agreed with Russia on the terms of a 10 billion euro ($13.5 billion) loan to finance the construction of two new reactors. The financing deal could be signed within days, its Economy Minister said.
It's proposed that Hungary will repay the loan over a period of 21 years after the new blocks become operational.
According to the Reuters article, it is believed that Hungary got the loan on better terms than current market rates would allow for....
BLR Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
