Looks like we`er in a short term uptrend....
Bloomberg
2006-08-22 14:56 (New York)
By Christopher Donville and Kathleen Campion
Aug. 22 (Bloomberg) -- Cameco Corp. Chief Executive Officer
Jerry Grandey comments on supplies and prices of uranium, the
radioactive metal used for fuel in nuclear reactors.
Uranium has climbed 57 percent to $47.25 a pound in the past
year, spurred by demand from hedge funds and power companies,
according to assessments on Ux Consulting Co.'s Web site.
Cameco, based in Saskatoon, Saskatchewan, is the world's
largest supplier of uranium.
On supplies:
``We're still in a position currently where 180 million pounds
of uranium are being used globally every year, but the industry is
only mining about 110 million pounds.''
``The price was for two decades about $10 a pound, below most
producers' cost and there was a real lack of investment in
exploration and new mine development. That has changed, but it
takes time to discover deposits and bring them into production.''
In the long term, reserves are sufficient to supply the
world's nuclear-power plants, Grandey said.
On prices.
``There's still upward pressure on prices. We don't see any
new pockets of supply that are going to suddenly come into the
market. That pressure that has caused a steep increase in prices
over the past two to three years is continuing. Over time, there
will be more production.
``The nuclear industry is the most heavily regulated industry
in the world, and it just takes time to bring new discoveries on
stream.''
AI
