Start as well as the uranium market, monotonous – as in the years 1980 and 1990 –
Then comes the bad news the seeds of renewed interest. In October 2006 it was Cigar Lake. In March 2007, flooding the Ranger operations attracted investors.
So when Cameco Corp. is bad news, this is usually good news for the spot price of uranium.
Based on Friday's edition of Nuclear Market Review (NMR), "The spot price held steady this week, in largePartly because of the uncertainty that will be announced late Friday that his Cameco Port Hope (Ontario) conversion facility will be closed for at least 2 months created. "The weekly industry trade left the TradeTech uranium spot price indicator unchanged at U.S. $ 129 / kg.
Today's announcement two months is planned closure of a substantial upward pressure on the spot price rather than, "according to NMR editor Treva Klingbiel. You guessed it the" minimum loss of 2,000 tUUF6 production "at shutdown.
Although Cameco reported the company has sufficient stocks to meet delivery obligations by the end of the year, Klingbiel pointed out, "The psychological impact on the market of this event is not granted, as the historical experience with its conversion disorder before. "
Land inside the outer walls of the plant was contaminated with uranium and reported related to the production of chemicals. Cameco Conversion Facility isabout 60 miles east of Toronto, near Port Hope (Ontario) harbor. Cameco Fuel Services, 1 place Eldorado, about a quarter of a mile from the shore of Lake Ontario.
During the last three weeks, slipped on the price of uranium place because of weak demand and provides enough space. Klingbiel said: "The sharp rise in prices for the budget constraints, some utilities may not have to participate in the spot market."
A higher offer is coming to market, but not inextraordinary amount of some fear, for example, € 5 million from the U.S. government.
About 200 tons of UF6 was offered earlier this week by the U.S. Department of Energy for the supply of September 21. This sale is just over 10 percent of the number bandied about by the media a few months ago.
And some buyers are still active. According to NMR, "One is the non-US expected utility on the market soon in around £ 200,000 to secureU3O8. "
While the uranium market is quiet, is far from dead. A week ago, Klingbiel wrote that the underlying fundamentals were in place long-term uranium market, very much alive.
It is not surprising considering the length of time is realistic taken many of the newer projects is actually uranium mines uranium.
The folly of forecasting the future supply of uranium
Thursday 'told a local newspaper, Northumberland, rumors about something significantcan be held in Port Hope, Cameco Corporation Conversion Fund, and the impact of local residents. Cameco communications spokesman Doug Prendergast told the reporter July 18, "There is nothing more important that it is imminent."
The history of the headlines: Cameco voices picks.
Prendergast also said: "If there is something to announce, we have there now unless they (employees), I do not know .." Perhaps they did, because …
Friday afternoon, Cameco announced itsthird piece of bad news for the week, closing the Port Hope facility for at least two months. Earlier this week, Cameco has been a further delay in the project company's Cigar Lake uranium known and lowered estimates on gold production on another property. As is the case with Cameco in the recent past, in the future, we should accept the "further development".
Although uranium is abundant in many regions of the world economy recovers and appropriateUranium is not as easy as many suspect "armchair quarterback".
During the last week we have our own opinion about issues of uranium projects, present and future in the world of uranium mining. First, we discussed several potentially "contaminated" large mining projects in key areas of uranium producing regions in our Uranium Outlook 2007-2008.
Our intention was to educate many analysts and investors who have taken very serious by many press releases and overly groundbreakingoptimistic Power Point presentation of uranium mining company executives.
Take for example Citigroup Alan Heap. Our Australian colleagues FNArena.com often have a few laughs at Mr. Heap costs, bringing his analysis, apparently mistaken the uranium market. For pity's sake, we have sent Mr. Heap a free copy of Investing in the Great Uranium Bull Market. We hoped that would more accurately analyze the goods, that his company charged him to say exactlyof.
Although Mr. Heap recently capitulated and upgraded its forecasts uranium price – this time to U.S. $ 100/pound for the next three years – in his first "Mutation in July to review uranium Utopia ', his analysis lacks long- term.
We hope that the miners of uranium, skip this next part is to avoid giggling uncontrollably.
Mr. Heap said: "The barriers to entry for production are relatively low my explorations and development of the mine are not very complex .." As a result of thisdeep thoughts, Mr. Heap forecast a long-term uranium price of U.S. $ 25/pound, after 2010.
In an article last week we warned: "Too much water, too little water, politics, greenies, economics, indigenous tribes, desalination plants, NGOs, camel trails, regulators and rebels are just a few mines analysts face when hoping expected long-term uranium prices to the summit. "We also warned:" The best bet is apparently against the future production of uranium. "
We have thisbecause the development of uranium mining can be particularly complex regulatory environment of today. After testing hundreds of presentations, observations, feasibility studies and advanced studies and other documents, is a tribute to the persistence of uranium miners that any uranium mining actually takes place.
Of the largest mines in the world, where we have problems to be expected this year and next, we have Rio Tinto's Rossing, Namibia. In a press release last week the company announced it Rossingproduction increased by about 400 tonnes in the second quarter – 29 percent over the same period a year ago.
In 2006, Rossing in third place behind the McArthur River Cameco and ERA Ranger uranium mine in terms of production. This quarterly loss of production represents about 13 percent of the Rossing mine production last year and about one percent of total global uranium extracted per year.
Progress leads to uranium projects move forward, butIt does not happen as fast as many analysts believe. Mr. Heap has highlighted in the summary of his report, "My power supply does not respond immediately." Seriously, Mr. Heap.
Last week, the report, we highlighted some of the reasons why my offer is not coming online as quickly as some once believed. There are problems ahead, which came on our radar and we are on top of this. Please stay tuned.
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