Rise in Indentified Uranium Resources?

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"We are in a time of buoyant activity for the uranium production cycle."

On Friday, industry consultant TradeTech LLC announced it had raised its weekly uranium spot price indicator by $3 to $55 per pound in step with what it calls "robust demand" in the uranium market.

Since bottoming at its lowest level in over three years in April ($40 per pound), the price of yellow cake has been slowly but steadily rising as demand for energy commodities in general increases across the globe and utilities companies seek partnerships with uranium miners.

"Uranium has moved up in line with energy commodities" over the last two months, said Glyn Lawcock, head of resources research at UBS AG in Sydney. "The price got beaten up earlier this year because people needed to generate cash, but things have calmed down."

Despite recent gains, the spot price still remains 60% below June 2007's record price of $138 per pound.

The industry's other major consultant, Ux Consulting, has raised its weekly price indicator by only $1 to $54 per pound. Both firms have kept their longer-term price at $65 per pound.

The word out of the International Atomic Energy Agency's (IAEA) International Symposium on Uranium Raw Material for the Nuclear Fuel Cycle taking place this week in Vienna, is that the demand for uranium from energy hungry nations is growing.

Currently, 436 nuclear reactors are in operation around the globe and account for 15% of the world's electricity production, according to the World Nuclear Association.

The worldwide recession has somewhat slowed new reactor construction projects, but longer-term demand, especially out of China and India, is expected to pick up again between 2015 and 2020, said Chaitanyamoy Ganguly, head of the IAEA's nuclear fuel cycle and materials department.

"We are in a time of buoyant activity for the uranium production cycle," commented Yury Sokolov, IAEA Deputy Director General and Head of the Department of Nuclear Energy. "It must be said that whilst the world may be in a period of economic recession, the levels of activity in the uranium mining business seem to be continuing unabated—at least for the larger producer companies and countries."

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