Global Emissions Strategies Make Yellowcake a Long-Term Investment


"Deutsche Bank believes exposure to uranium stocks is a solid long-term investment. . ."

Deutsche Bank believes exposure to uranium stocks is a solid long-term investment, underpinned by the move to cut global emissions.

But prepare for a few setbacks in the next couple of years, thanks largely to U.S. government sales of UF6 (uranium hexafluoride, the material used in uranium enrichment that produces fuel for nuclear reactors), which are expected to begin about now and run through to 2012.

Add to that increased mine production from Kazakhstan over that same period. Deutsche estimates that uranium markets will move from a deficit of 6.4 million pounds this year to a 9.9m/lb surplus by 2012.

The Deutsche report was just being committed to print as Indian Prime Minister Manmohan Singh was outlining plans to take India's 4100-megawatt nuclear capacity to 40,000MW by 2020 and 63,000MW by 2032.

Some time before then, one hopes, some future Australian government will have decided that the ban on uranium sales to India is a flawed policy—a decision already reached by the U.S., Canada, Namibia and France, among others.

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