Uranium Price Could Hit US$105/lb. by September
Source: Mineweb.com (3/25/08)
Respected Australian Research Group Resource Capital Research (RCR) said the uranium price has been on a cartwheel having achieved $US210 in the second quarter of 2007 and a low in the third quarter of last year of $US70/lb and indicators suggest the market expectation is for an uranium price of $US105/lb by this September.
A study on the March 2008 quarter showed that the capitalisation of Australian companies with more than one uranium prospect - 263 companies - was down over March but down 27% over the past three months and down 12% over the past 12 months.
This compares with a selection of 285 Canadian companies with one or more uranium projects, up 11% over the past month, down 1% over the past 3 months, and down 16% over the past 12 months.
RCR's principal, John Wilson said the junior end of the market has been disproportionately hurt by the sub-prime market fall out and earlier than expected peak in the uranium price.