IMPROVING URANIUM MARKETThe outlook for the uranium industry...

IMPROVING URANIUM MARKET
The outlook for the uranium industry worldwide is extremely bullish, with demand forecast to outstrip supply for at least the next decade. The spot price of uranium has increased from US$7.00/lb U3O8 in December 2000 to US$138.00/lb U3O8 in June 2007. Recent downturn of the spot price to US$93/lb is seen as a short term phenomena and is expected to resume upward movement in the near term. Although downward price
fluctuations occur, the overall positive market outlook is the result of a recognized shortage of uranium predicted to occur post 2008. This shortfall can only be met with additional production coming from new mines as existing mine capacity is unable to accommodate the increasing market demand. It is apparent that further upward uranium price movement will be driven by the growing fundamental and unprecedented supply/demand anomaly that has emerged. Resurgent interest in the ability of nuclear power plants to produce large amounts of very stable electricity output at little environmental cost means it is highly likely there will be a significant number of new reactors ordered this decade.

source: Kayelekera_Brochure_April_2007 Paladin.pdf


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