News

May 05, 2009

The Week In Alternative Power: Positive Sentiment In The Nuclear Industry Prompts A Flurry Of Deal-Making

By Sally White

Uranium prices have hit bottom according to research out from RBC Capital Markets last week. RBC pointed to the recent purchases by Japanese and Korean utilities seeking to secure long-term supplies. “We believe that the uranium market is in the early stages of a bull market rally that could last three to four years”, said analyst Adam Schatzker. He believes that it will take around two years for uranium equities to recover to past peaks. Many companies are still down by over 60 per cent, although sector indices are up 225 per cent from the lows.

Denison Mines chief executive Peter Farmer also predicted last week that the uranium price was on the way back, although spot levels are only a few dollars a pound off the recent low of US$40, at around US$45 currently. Farmer said that spot prices will reach US$60 to US$70 a pound over the next year. He pointed to the 44 nuclear reactors now under construction globally, the 110 that are at the planning stage and the 272 that are proposed. Meanwhile, UX Consulting estimates that while demand...