nuclear-news

Australia’s ailing uranium industry

In short, the deal with India is seen by some as little more than a short term means to prop up an industry breathing its last gasp……

[For uranium explorers] the 52 week highs and lows paints the same picture as we saw for the producers – market participants doubt the viability of exploring for a product whose demand may be in jeopardy.  

  Share market participants have spoken and they clearly doubt the future of nuclear energy.

URANIUM STOCKS HIT HARD BUT BULLS ARE BELLOWING, The Bull,    By Bob Kohut | 30.01.2012 As the dismal trading in 2011 global share markets ground down to its agonising year-end finish, some Australian investors were heartened by the news that our government was about to lift the ban on uranium sales to India..

… the United States agreed to support India’s civil nuclear programme back in 2008, and Australia decided to follow suit – although the decision to lift the ban was controversial.  The vote to pass the proposed removal of the ban was 206 in favor with 185 voting against.

In reality, the lifting of the ban merely opened the door to negotiations between the two countries…. In better times this event would have been more of a market catalyst than it was, but the Japanese nuclear troubles earlier in the year dramatically changed global perception of nuclear energy.

In short, the deal with India is seen by some as little more than a short term means to prop up an industry breathing its last gasp……
[For uranium explorers] the 52 week highs and lows paints the same picture as we saw for the producers – market participants doubt the viability of exploring for a product whose demand may be in jeopardy.

Investing in any Australian uranium company – producer or explorer – requires nerves of steel.  ….
While the performance of the overall ASX Energy Index – the XEJ – has
suffered with a 20% drop year over year, the numbers for PDN and ERA
are bone-chilling – both down more than 60%.  The chart tells the
story – the bottom dropped out for the uranium producers in the
aftermath of the Fukushima incident while the XEJ actually went the
other way remaining positive for a while.  Share market participants
have spoken and they clearly doubt the future of nuclear energy.
As you know, contrarian investors have made handsome returns betting
against the crowd.  But sometimes, the crowd is right.  So what of the
future of nuclear energy?

January 29, 2012 - Posted by Christina Macpherson | AUSTRALIA, business and costs