Uranium Industry Could be Reshaped by Two Events

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While Wellington West analyst Catherine Gignac noted that the spot price for uranium remained unchanged at US$113 per pound, two events could reshape the industry.

Metal prices continued to climb last week as merger and acquisition activity in the sector continued.

Gold ended the week at US$691.95 an ounce after gold price guru and economist Martin Murenbeeld said he expects bullion to average US$680 this year and will trade as high as US$800, while expecting gold to average US$765 in 2008, Wellington West analyst Catherine Gignac said in a research report.

While Ms. Gignac noted that the spot price for uranium remained unchanged at US$113 per pound, two events could reshape the industry. The first is the New York Mercantile Exchange’s partnership with Ux Consulting to offer uranium futures contracts, while the other is the Chinese Commission of Science Technology and Industry for National Defense announcement that it intends to create a strategic uranium reserve that will be achieved through domestic exploration and foreign investment.

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