Uranium Price Powering Ahead

Source: MetalMiner, Stuart Burns (11/8/10)

"Uranium price, capacity and demand are increasing."

As a material with a key role in power generation and an active spot market, uranium deserves periodic review. The market has been moving up. A Bloomberg article last month called out advice from Macquarie Group of significant risk of higher prices in the event of supply disruptions. At the time, uranium prices were $45–48/lb.; since then, and even though there have not been any supply disruptions, prices are now at US$53.50/lb. and annual sales volumes are up a third over 2009.

In some parts of the world, massive nuclear programs are underway as a way to limit carbon emissions and environmental damage from coal. Credit Suisse reports China has 24 reactors under construction, about half of which were started in just the last 12 months. China's target for installed nuclear capacity is 70 GWe by 2020 and with only 11 reactors providing 8.6 GWe at present, the program will require around 60 new builds. According to the World Nuclear Association, such build rates are not unprecedented. During the 1980’s, the world was adding one new nuclear reactor every 17 days, including 47 in the U.S., 42 in France and 18 in Japan.

World Nuclear Reactor Build

Despite planned reactor new builds, a number of those old reactors are now coming to the end of their lives and, as in the UK, will be replaced later this decade. To some extent, closures will mitigate new builds so that the sum of new capacity added each year will drop as the decade goes on. Even so total nuclear generating capacity is estimated by Credit Suisse as likely to rise from the current level of 373 GWe to approximately 425 GWe by 2014 and 495 GWe by 2020, representing annual growth of about 3%.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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