uranium set to soar

FYI...

Extract from an article yesterday appearing at http://uraniuminvestingnews.com/


Uranium market facing supply challenges

The troubled uranium price, lack of investment capital and greenfields development, coupled with the increasing number of nuclear reactors worldwide, have created a looming supply crisis in the uranium market, according to John Borshoff, CEO of Paladin Energy (TSX:PDN,ASX:PDN). “[T]he uranium industry is definitely in crisis, I believe, and is showing all the symptoms of a mid-term paralysis if this situation does not demonstrably change,” he said, speaking at the Australian Uranium and Rare Earths conference this week. On Wednesday, the company posted production results showing a record year with overall production rising 20 percent, to 8.25 million pounds, on increased output from the Langer Heinrich and Kayelekera operations.

Market watchers remain confident that the uranium market is on the verge of a significant turnaround, despite spot prices dipping below $40 per pound last month for the first time in four years. A total of 66 nuclear plants are under construction worldwide and another 266 are planned or proposed over the next 15 years, notes Australian Mining. The publication estimates that demand will outpace supply by more than 11,000 tonnes in 2013.

The coming supply shortage has uranium market gurus like Jeb Handwerger taking a bullish stance on uranium mining stocks. Uranium spot prices may be on a downward slide, but “uranium miners such as Cameco [TSX:CCO,NYSE:CCJ] are up over 30% since the November low … this outperformance of Cameco versus the uranium spot price may be signaling a potential bullish reversal for the sector,” said the mining analyst and editor of Gold Stock Trades in a recent article.

The link to the recent article referred to is here...

http://www.resourceinvestor.com/2013/07/18/five-signs-uranium-could-explode-higher-in-the-sec?ref=hp