To: Goose94 who wrote (4498 ) 1/22/2014 1:52:20 PM From: Goose94 Respond to Gearing up for a uranium recovery with Japan's uranium surplus unwinding? The past weeks continued to show improving sentiment for uranium. The spot price has been creeping up off a base set last summer to ~US$36/lb currently. Uranium Participation Corp. (UPC), the world's only physical uranium fund, secured a $50 million bought deal to fund additional uranium purchases. By mid-day, the deal was fully subscribed. Since early November, UPC has been trading at a consistent premium to its net asset value, implying higher future uranium prices. Shares in major producers such as Cameco and large explorers such as Denison have pushed through key technical supports - both up ~40% since October lows - with advanced juniors like U3O8 Corp. now also breaking out on the upside.With the growing number of uranium supply cutbacks and disruptions since mid-2011, shrinking inventories held by global utilities and increasing demand spurred by new reactor builds - these signs suggest uranium is gearing up for a recovery. Global utilities have also let their strategic inventories fall to 6-year lows. In 2013, utilities only bought 20Mlb vs. an average of 160Mlb over the last decade. So when the inevitable supply squeeze emerges, utilities with insufficient uranium inventory may need to accelerate buying irrespective of the price. On the demand side, new reactors continue to go online
