Uranium Price Expected to Rise as Nuclear Demand Soars

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...with sub-$100 oil barrels a distant memory and coal following similar trends, Richard Lockwood, Investment Manager, CQS New City, said he would be ‘flabbergasted’ if long-term uranium contracts from new nuclear power stations did not reach $100/lb or more within a year. ‘I think we will have a new pricing established and it will be by the people who are spending vast sums of money on power stations,’ he said. ‘There’s no point in spending $5 billion on a power station if you haven’t got the actual base commodity worked out.’

Investment manager is expecting the price of uranium to rise to more than $100/lb, with founder Richard Lockwood citing as the only viable major source of clean energy.Lockwood advises Geiger Counter, a closed-ended investment company that invests globally in companies involved in the uranium industry, such as AIM-listed Kiwara, Kalahari Minerals and Nufcor.

Geiger’s share price total return since launch has mirrored the spot price of U3O8 – a price indicator widely accepted by the uranium industry – reaching a peak in June 2007 as the underlying commodity went north of $135/lb before tumbling back down to $58/lb in May.

But with sub-$100 oil barrels a distant memory and coal following similar trends, Lockwood said he would be ‘flabbergasted’ if long-term uranium contracts from new nuclear power stations did not reach $100/lb or more within a year."I think we will have a new pricing established and it will be by the people who are spending vast sums of money on power stations," he said. "There’s no point in spending $5 billion on a power station if you haven’t got the actual base commodity worked out."

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