Uranium Expected To Perform "Relatively Well" in 2009由BC

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"The bank is forecasting an average spot price of $60 per pound for 2009."

RBC said uranium is expected to perform "relatively well" in 2009 as both utilities and investors have been showing renewed interest, resulting in record spot volumes in 2008 and the spot price rebounding from recent lows.

"Significant production cuts were announced in late 2008 and we think the supply side of the equation remains at risk, while demand appears to remain in line with our expectations." The bank is forecasting an average spot price of $60 per pound for 2009.

It recommended a "market weight" position in uranium and said if the operating risk associated with the sector is a concern, investors should consider Uranium Participation Corporation (TSX:U), an investment holding company that invests in uranium.

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