Sunday, June 1, 2008 at 06:05PM
An Australian company, Resource Capital Research (RCR) believes that an expected improvement in the price of uranium is part of the reason behind an improving outlook for uranium stocks on both the Australian and Canadian exchanges.
A senior analyst for RCR, John Wilson, said that “positive market sentiment has returned, driven by indications the spot uranium price is about to head up, combined with relative stability in the equity markets following the sub prime rout.”
The survey goes on to say that the market valuation of Australian companies with one or more uranium projects (266 companies) is up 23% over the past month, up 12% over the past 3 months, and down 8% over the past 12 months. This is not dissimilar to what we have been witnessing on the Toronto Stock Exchange where a number of uranium stocks have demonstrated signs of life including one of our ‘buys’ Laramide which is up 60% over the last month.
There are two more interesting snippets in this article are as follows:
Firstly, America's Congressional Budget Office reported that nuclear power would be commercially competitive compared to conventional fossil fuel technologies at a carbon price of $US45/t. Rising prices of competing energy sources - both spot oil and thermal coal prices, which spiked over $US130/bbl and $US130/t respectively, reinforces the commercial potential of nuclear energy.
Secondly, Planned and proposed construction of new nuclear power reactors worldwide has increased "strongly" in the past two years. From January 2007 to May this year there was an increase of 89 reactors from 222 reactors to 311 reactors (+40%). This compares with 439 nuclear power reactors currently in operation and 36 under construction.
To read the article in full just click this link.
We are pleased to see that this is a positive view from the southern hemisphere and thank one of our readers, W, for alerting us to it.
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