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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (63917)	5/17/2005 2:37:38 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

I think the uranium business is a bit 'clubby' Also, during a Uranium Boom, there is likely to be limited gasification and enrichment capacity - the enrichment part has huge capital costs. That can be a real bottle neck. Also, fuel rod fabrication capacity is also limited. So the price of Uranium in fuel rods could soar, but not move the price of yellow cake U3O8 much, once processing capacity had been filled. It's like heavy crude prices vs. gasoline prices when refinery capacity is limited. The input side of the bottleneck has much lower prices than the output side.