Flat outlook for uranium spot prices

26 August 2009 by Michael Mills

Equity research company Resource Capital Research (RCR) said it is not expecting any significant changes to uranium spot prices in the near term.

The uranium spot price is currently trading at US$47.50 per pound, down 8% from the US$52 three months ago.

At the end of December 2008, the prices were US$52.50 per pound.

According to the company, the Fund Implied Price (FIP) is currently the same as the spot price, indicating there is no significant price change anticipated by the market in the near term.

The company announced this forecast in a major quarterly report into 19 global uranium exploration and development companies, launched today,

The report reviews companies listed in Australia, Canada, USA and UK that are active in established uranium, including Australia, Canada, USA, Argentina, Peru, Mongolia, Zambia, Tanzania and Namibia.

The long term contract uranium price is US$65.00 per pound, which is down from US$70 per pound price at December 2008.

However this has been relatively stable since peaking at US$95 per pound from May 2007 to March 2008, the company said.

There are 413 new nuclear reactors planned or proposed globally as of August 2009, 30% up from the 318 at the same time last year.

There are also 436 nuclear power reactors in operation and 49 under construction, the company said.

According to RCR, the market valuation of Australian companies with one or more uranium projects is up 11% over the past month and 24% over the past three months but and down 6% over the past 12 months.

By comparison, Canadian companies with one or more uranium projects are up 9% over the past month, up 19% over the past three months but down 26% over the past 12 months.

http://www.miningaustralia.com.au/Article/Flat-outlook-for-uranium-spot-prices/495758.aspx