Reasons To Be Positive On Uranium
From Nine MSN
By Greg Peel
At the end of October uranium industry consultant TradeTech dropped its spot price indicator for U3O8 by US$5.50 to US$41.00/lb, its mid-term indicator by US$5.25 to US$45.00/lb and its long term indicator by US$2.00 to US$59.00/lb after the worst week for uranium prices since the Fukushima disaster. General belief among uranium analysts is that prices must eventually come under upside pressure given the global demand-supply balance, but a lack of interest from buyers appears to contradict this opinion. Hanging over the global uranium market’s head, apart from anything else, is ongoing uncertainty with regard to Japan’s nuclear future.
Ahead of the Herd’s Rick MIlls has his own opinion and last week Melissa Pistilli of Uranium Investing News (uraniuminvestingnews.com) sat down with Rick to discuss uranium prices and the outlook for U3O8 producers. Melissa’s interview follows herewith.
Uranium Investing News: Short-term uranium spot prices are trading nearly $20 a pound below long-term prices. Can you explain the huge disconnect?
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