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Uranium at $150/lb within a year

Allan Seccombe

Posted: Thu, 29 Nov 2007

[miningmx.com] -- THE uranium price will move to $150/pound within the next year driven by supply and demand fundamentals, said Uranium One CEO Neal Froneman.



The spot price for the energy metal is $93/lb and the long-term price $95.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Our view is that we see uranium at $150 within the next year or so. Market activity is increasing,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Froneman told Miningmx.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The fundamentals are better than six months ago. Production is not reaching levels that were expected and demand is increasing,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ he said.


The price of processed uranium or U3O8 reached an all-time high of $138/lb in June this year from below $10 seven years ago, but has since pulled backed.


Cameco, the worldÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s largest miner of uranium, has reduced output from its Rabbit Lake operation in Canada because of increased water flows underground at the Eagle Point mine. Rabbit Lake normally produces around four million pounds of uranium a year.



Click Here to subscribe to our daily newsletter"Limited mining activity will continue and the mill continues to operate with a small amount of stockpiled ore. This mine has encountered similar situations in the past and dealt with them successfully," Cameco said on Wednesday.


Uranium prices shot higher when CamecoÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Cigar Lake flooded. The mine, which is planned to produce 18 million pounds of uranium, will now only start production in 2011 at the soonest instead of this year as originally forecast.


Cigar LakeÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s output was an important consideration in the uranium market where demand growth is overtaking that of supply amid a concerted effort in a number of countries to build nuclear plants. Nuclear power has crept back into fashion because of growing global concerns about climate changed caused by burning fossil fuels.


There are 435 nuclear plants operating in 30 countries. Twenty-nine new nuclear plants are under construction 12 countries. And, in the USA, 48 nuclear plants have received license renewals, with 34 more expected, according to TradeTech President Treva Klingbiel.


ChinaÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s uranium demand will grow to 7,000 tonnes by 2020 from the current 1,000 tonnes as it extends its nuclear plant programme, Li Junjie, director of the uranium material department of the State Nuclear Power Agency, said in November.





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Well I am starting to feel bullish on this from a trading perspective again. The other day the market was looking set fo further losses and THX was/is nearing the end of a descending triangle formation. But with the markets making some positive movements in the last couple of days (and looking to continue to do so) THX looks like it is set to break through the down-channel resistance in the next couple of days. I hope I haven't jinxed it with this statement. http://www.sharescene.com/html/emoticons/ph34r.gif


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  • 2 weeks later...
research report out from BBY. Not a bad read and reinforces what most of us already know. A few assumptions which i believe are a little on the low side, but thats the conservative nature of analysts these days. Have a attached a copy.


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  • 2 weeks later...

Good to see its staring to move in the right direction again with the market depth looking healthier of late too.


Happy new year everyone!


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In reply to: romaioi on Monday 31/12/07 10:54am

I agree romaioi,

Options up a fair bit! 0.27C + 0.055

And mains are also heading in the right direction! 0.450 + 0.025

Cheers, http://www.sharescene.com/html/emoticons/biggrin.gif

salts (son)


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Thundelarra have announced that a Mining Lease has been granted for the Copernicus Nickel Project. It's a joint venture between Thundelarra (40%) and Sally Malay Mining Limited (60%). Thundelarra has also secured funding for its share of project development costs (estimated to be approximately $5 million, through the recent sale of 12.1 million United Minerals Corporation (UMC) options, which netted $9.44 million after expenses). They also still retain 20.4 million fully paid UMC shares with a market value of $26.5 million based on the last close of trade.


The sp is currently down because of another US fall last night http://www.sharescene.com/html/emoticons/thumbdown.gif



salts (son)

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