PRZOOM - /newswire/ -
Sarasota, FL, United States, 2006/10/30 - TradeTech reported a record spot uranium price of $60.25/pound in their latest announcement. The 7 percent jump in the weekly uranium price indicator came as a result of a Canadian uranium mine flooding..
Global utilities will soon be paying more for their nuclear fuel. Spot prices for uranium oxide (U3O8) punched through the US$60/pound level for the first time in the spot market’s 38-year history. According to figures released this weekend by TradeTech, the weekly spot uranium price indicator stands at US$60.25/pound. The spot price jumped 7 percent after Cameco Corp announced ‘uncontrollable flooding’ at the company’s massive Cigar Lake uranium project. The world’s largest uranium producer warned of a mine production delay of more than one year.
In a telephone interview, TradeTech’s CEO Gene Clark told StockInterview.com, “Cigar Lake is a must-have project for the industry. Getting that project back under development will be essential.” He added, “While the ‘sky has not fallen’ yet, there is not much breathing room left in the system.” Less than two months ago, spot uranium traded at US$50/pound.
During the depressed uranium market of the 1990s, participants ‘counted by nickels’ when anticipating monthly price movements. Because of strong demand and tight supplies, according to Clark, analysts are now thinking in terms of $10/pound price movements. “If you’ve got uranium in your hands now, you’re going to make some real money on it,” Clark said.
Sprott Asset Management Market Strategist Kevin Bambrough who was also interviewed, warned, “So far the uranium market hasn't priced in the risk to the viability of Cigar Lake nearly enough.” Strathmore Minerals (TSX: STM) President David Miller cautioned that replacement uranium supply sources might not ready be forthcoming, telling StockInterview.com, “While there is plenty of uranium in the ground around the world at this price, the problem is still getting permits and getting them into production. My guess would be a spike above $100, maybe even above $150.”
TradeTech and its predecessor NUEXCO have been publishing uranium market prices since the inception of the commercial nuclear fuel market in 1968.
StockInterview.com is a financial news service covering developments in the nuclear fuel industry. StockInterview’s publication, “Investing in the Great Uranium Bull Market,” has been praised as must-reading, and was endorsed by the preeminent scientist and environmentalist, James Lovelock. Gene Clark, Kevin Bambrough and David Miller were contributing editors to this publication.
Gene Clark, TradeTech