RCR Research on the Uranium Sector

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"Uranium market to be buoyed by solid fundamentals mid to long term. Any impact from Japan on the contract price is expected to be temporary"

Resource Capital Research, an equity research firm focusing on small- and mid-size resource companies, today launched its major quarterly research report covering 17 global uranium exploration and development companies.

The report covers TSX.V- and U.S.-listed companies: Australian-American Mining Corp Limited, Bannerman Resources Ltd. (TSX:BAN; NYSE:BMN; ASX:BMN), CanAlaska Uranium Ltd. (TSX.V:CVV; OTCBB:CVVUF; Fkft:DH7), Extract Resources Ltd., Paladin Energy, UrResource and Capital Research Energy, as well as ASX-listed companies.

Uranium Market Key Points
  • The uranium spot price is US$60/lb.
  • The uranium spot market is likely to experience increased volatility over the next three to nine months.
  • The long-term contract uranium price is US$73/lb. (Feb. 28). Any impact from Japan on the contract price is expected to be temporary, remaining at or quickly returning to +US$70/lb. territory—the level necessary to support development decisions numerous advanced projects.
  • About 75% of all reactors in operation today are over 20 years old, and 25% are over 30 years old. Older reactors will be under increased scrutiny from regulators.
  • The uranium market is expected to be buoyed by solid fundamentals mid to long term.
"The impact of the damaged nuclear reactors in Japan to the outlook for nuclear energy will likely take 12 months to unfold fully. However, mid to long term, growth in the sector is expected to remain buoyant, albeit on a flatter trajectory than previously thought, driven by strong fundamentals, including the global need for low-carbon, baseload electricity-generating capacity," said RCR Managing Director John Wilson.

To access the free summary report or purchase the full comprehensive report, click here.

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