Spot Uranium Reacts to Pressure, Reaches $113 a Pound

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Managing Director (of Toro Energy, an Australian explorer) Greg Hall noted "this price is again based on an auction of 100,000 lb last Wednesday in the US, and was also impacted by ERA's announcement of a lower production forecast next year from the Ranger Mine in the Northern Territory [Australia] after recent floods there.

Managing Director (of Toro Energy, an Australian explorer) Greg Hall was quick to comment on today's spot price for uranium, which has jumped by $18 to $113/lb. His comments came while most in London were breakfasting and commentators in North America were sleeping off the Easter holiday. He noted "this price is again based on an auction of 100,000 lb last Wednesday in the US, and was also impacted by ERA's announcement of a lower production forecast next year from the Ranger Mine in the Northern Territory [Australia] after recent floods there.

Essentially ERA is predicting about 1,200 t lower production for 2008 compared to 2006, as it will have difficulty accessing higher grades to maintain their head grades. This amount is the planned annual output of Paladin's new Langer Heinrich mine which last month announced its first commercial shipment. So," he emphasized, "from a global supply perspective, it is just as if Langer Heinrich has not started, keeping pressure on the price."

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