YEP , this belongs to the longer term potential for Uranium. A shorter term spike might come when the 40% intended cut of rare materials by China are being felt. Japan and Germany are already in a crises mood about it. China the main producer of rare materials has us now on the balls and own resources can get more and more important rather fast.
This is the wild card. New resources can be discovered , but it takes a long time to get production rolling.
China says now, they have to preserve their resources , they cannot produce any longer those large amounts, they will run out in 15 years if they do not cut back.
Japan for sure feels, there are other motives too.
This situation about rare materials from China can teach us a lesson in regards to Uranium.
Great article. Summarizes nicely the dynamic affecting the price of uranium. The key point that current mining operations are cannot supply existing demand. The warhead to fuel program is about over. Actual construction, planning, plants coming on line, fueling and stockpiling continues. This is a dynamic industry. The miners who had signifigant book value in 2007 should reapproach those peaks. Be a little patient with these stocks and IMHO you will be rewarded.