Speaking at the Platts Nuclear Fuel Approaches Seminar in Washington DC on Tuesday, Scotiabank’s Business economics Vice-President Patricia M. Mohr, an extremely valued uranium and products expert, forecast spot uranium will reach $60/pound in late 2006. She told uranium gas supervisors, hedge funds, investors, energies, as well as various other uranium market insiders, “Uranium will certainly average $60 to $65/pound in 2007.” That’s up from her 2006 projection for approximately $46.45/ pound.
Mohr emphasized that uranium is not trading in tandem with either gold, gas, or oil. “Uranium has actually behaved like a base metal as well as can go higher,” she stated. According to UxC, place uranium reached a brand-new high of $54/pound on Tuesday. “It is now 51 percent over its previous optimal,” Mohr mentioned. While she noted her Asset Index came to a head in August, as well as Mohr anticipates commodity prices lower into 2007, she included, “Uranium is the exemption to this policy. I see these costs moving up higher. Uranium supply is exceptionally limited.”
While some at the conference suggested for a future market in spot uranium, Mohr discouraged this. “The investors established the cost instead of the real trade (as is presently being done),” she cautioned. “If uranium were traded on a futures exchange, it would certainly be at $100.” She pointed out that uranium is up 72.2 percent over the past YEAR.
Mohr gave two fundamental reasons for uranium’s rocket trip in 2006: insufficient mine supply and also a ‘transformational modification’ for baseload electricity generation. “It is a secular renovation, not a cyclical enhancement,” Mohr told StockInterview.
She was cynical about a near-term enhancement in mine supply. “The Kazakhs are extremely enthusiastic in their plans,” Mohr mentioned. “Their timeline is unrealistic.” Mohr resembled comparable remarks about Kazakhstan uranium mining made earlier at this seminar by Power Resources CEO Fletcher Newton who stated of the Kazakhs, “They believe huge ideas.”
Mohr sees no effect from Cameco’s Stogie Lake manufacturing until a minimum of 2008, when she expects the Canadian uranium mine to produce concerning 7 million extra pounds. She forecast Cigar Lake to produce 11.6 million extra pounds in 2009 as well as increase to 18 million by 2010. Mohr does not expect a major development at Australia’s Olympic Dam up until 2012 to 2014.
She believes ‘initial core demand’ of 198 million pounds for the 168 atomic power plants to be created between now and 2020 as “a crucial consider boosting (the uranium) price.” Mohr sees the nuclear renaissance well underway. Of uranium mining stocks, she really felt Paladin Resources was a bright area this year and also observed that uranium business had included tiny increments or uranium manufacturing in the USA.
Additionally joining Mohr on the uranium mining panel were Dustin Garrow of Paladin Resources, that predicted a future uranium cost of in between $80 as well as $100 pound, and David Miller of Strathmore Minerals, whose research indicated U.S. uranium mining manufacturing might reach up to 25 million pounds annually by 2020. Find the best scotiabank branches & ATM for your finicial advice by check out source.
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