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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30445)	12/16/2008 10:32:23 PM
From: LoneClone	Read Replies (2) \| Respond to of 194002

Mixed outlook for uranium price in next quarter - RCR Resource Capital Research (RCR) expects the uranium spot price to trade between $50-$65 over the next quarter. Author: Tessa Kruger Posted: Monday , 15 Dec 2008 JOHANNESBURG - mineweb.com Resource Capital Research says fundamentals suggest a slight strengthening in the uranium price, while the fund implied price indicates uncertainty. However, there are now 376 nuclear reactors planned or proposed globally. The firm said in its December quarterly report that while sector fundamentals suggested a modest strengthening in the spot price could take place into the first half of 2009, the fund implied price of $36/lb indicated market uncertainty and the possibility of further forced uranium fund sales. The long-term contract uranium price was $70/lb, down from $95/lb, where it stood firmly from May 2007 to March 2008. RCR said long-term and spot uranium prices were expected to converge over time. Producers continued to face significant challenges in financing and developing new projects, including cost pressures and potential delays relating to permitting, infrastructure development and commissioning and credit and equity market weakness. Recent examples of this included Uranium One placing Dominion on care and maintenance and the postponement of the Midwest project in Canada. The uranium spot price traded at $55/lb at the beginning of the quarter, after it briefly fell to $45/lb late October and early November as a result of liquidity driven sales by uranium funds. The current spot price is $54/lb compared to the cycle high uranium price of $138/lb of June 2007. Nuclear Power Reactors RCR said there were 376 new nuclear reactors planned or proposed globally on 8 December compared to 318 units on 8 August this year. The main increases included eleven in the United Arab Emirates, ten in Italy, six in the United Kingdom, six in Vietnam and five in Poland. The firm said it was interesting that a significant number of the new planned and proposed reactors announced since August were in advanced, non Asian economies such as Europe. Although it was too early to call a trend, it confirmed advanced market economies' potential to drive nuclear reactor growth going forward. This was against the background of energy security concerns and climate change commitments. There are currently 439 nuclear power reactors in operation and 39 under construction. A total of 61 new reactors are expected to be commissioned by 2014.