Is The Uranium Price Finally Bottoming?

Uranium may represent a bottoming situation. Look for a reversal in the near term and break above the recent downtrend due to the following reasons.

1)64 nuclear reactors are being built all over the world. A new reactor needs three times the amount of uranium that an operating reactor.

2)The world is already in a supply shortfall. Mine supply only provides 144 million lbs to a sectors which needs 180 million lbs. This is being made up by secondary supplies coming from Russia set to end in December 2013.

3)When Russian HEU Deal ends 24 million lbs will need to be made up for or 14% of world’s supply.

4)Japan and Germany may start coming back online as electricity costs soar. Japan is updating 23 reactors. New elections are coming up with the Pro-Nuclear party in a wide lead. Part of the parties platform in further monetary easing and promoting the restart of nuclear reactors.

U3O8 Corp (UWE.TO or UWEFF) is about to publish a Preliminary Economic Assessment (PEA) shortly possibly before the end of the year. This is a key step for the company as it gives a good value of what the projects are worth to investors. Some of the large miners have had to delay uranium mines due to the higher cost of production. U3O8 Corp has a multi-commodity mix at its deposits with vanadium, rare earths and phosphates. This may be an advantage as U3O8 Corp may be a lower cost uranium producer thanks to the value of the additional byproducts which was recently highlighted in the release of the Berlin Project’s metallurgy.

http://www.dailymarkets.com/stock/2012/12/10/is-the-uranium-price-finally-bottoming/