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Mineweb – ENERGY – Uranium`s crystal ball is price sobering

RCR QUARTERLY REVIEW Uranium’s crystal ball is price sobering
Mineweb Ross Louthean 05 Oct 2008  The industry average long-term uranium price has been downgraded $US15/lb by RCR’s just-released quarterly Equity Research Report from its third quarter report to $US80/lb and saying  that in the current quarter it will trade between $US50-65/lb.

At the time the report was released the spot uranium price was $US55/lb.

RCR’s principal, John Wilson, said global equity markets remain volatile and investor sentiment cautious and this has seen the junior end of the resource sector “disproportionately negatively impacted.”

“A number of companies are trading below their cash backing and we expect smaller cap public companies to continue to face funding challenges,” he said…………………..

The market valuation of Australian companies with one or more uranium projects is down 11% over the past month and down 44% over the past 12 months.

This compares with a selection of Canadian companies with one or more uranium projects, down 25% over the past month and down 57% over the past 12 months………………………….”Producers, however, could face significant challenges in financing and developing new projects, including spiralling cost pressures and potential delays variously relating to permitting, infrastructure development and commissioning.”

Mineweb – ENERGY – Uranium`s crystal ball is price sobering

Tags: Nuclear, antinuclear, radiation, uranium

October 6, 2008 - Posted by Christina Macpherson | business and costs