Even after a very rough year in the uranium market, RBC Capital Markets analysts Adam Schatzker and Fraser Phillips continue to like the long-term prospects of the radioactive metal.
In a note to clients, they wrote that the market should remain in balance from 2009 through 2017. But from 2018 onward, their projections indicate a potential for "severe and growing" deficits as more nuclear reactors are built and supply problems persist.
In the long term, they think that new supplies needed to fill the gap after 2017 will require a uranium price above $80 a pound to give producers and explorers the motivation to get new projects onstream. Below $75, the capital markets will not be too willing to fund projects.
"In our opinion, the prevailing uranium price [about $53 a pound] is too low to stimulate sufficient demand to cover future reactor requirements," they wrote.
All the same, the analysts do think that 2007 was the "peak" year for uranium prices. That was when a run on the metal by hedge funds sent the spot price up to ridiculous levels above $130 a pound.
They are forecasting an average spot price of $60 a pound in 2009, growing to $75 in 2011 and $80 in 2013.
Amounts shown in US$
i think we see up to$75 this year... as demand comes up short.... for the 400+ reactors in use. JMHO
What is is real currency of today.
uranium buy buy buy
urre, uec, cvvuf, urst and look at thpw- it is so good and they are so smart they could spoil or cut into uranium so you must have some- india love thpw
china loves cvvuf
mitsui loves uranium
buy buy buy buy
Why would a Country swimming in its own oil want to go nuclear energy?
The Islamic republic has defied UN sanctions designed to halt its enrichment of uranium, insisting that its nuclear program is for civilian energy needs and has no military bent.
Just maybe they see it as the best!Probably really suffer from pollution in the desert!
I think all would be best off if we get a no-bid cost plus contract to run Irans nuclear energy plants!
Nuclear power plants that come into operation after 2010 may still be able to enjoy ten-year tax holiday if a recommendation by the
Atomic Energy Commission (AEC) is accepted by the government.
AEC has sought tax relief on income from power generation business to be extended to companies that start nuclear power generation before March 31, 2020. As per the current provision in the Income-Tax Act, income arising from power generation is exempt from tax for 10 years if the units begin operation between April 1, 1993 and March 31, 2010.