Uranium price warningGlobe says Denison, rivals hear bullish call on uranium
Denison Mines Inc (TSX:DEN)
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Tuesday January 10 2006 - In the News
Also Uranium Participation Corp (TSX:U) In the News
Also Cameco Corp (TSX:CCO) In the News
Also International Uranium Corp (TSX:IUC) In the News
Also Mega Uranium Ltd (TSX-V:MGA) In the News
The Globe and Mail reports in its Tuesday edition that Sprott Asset Management analyst Kevin Bambrough's recent uranium price warning has caused a stir in the United States. The Globe's Patricia Best writes in the Nobody's Business column that last week Mr. Bambrough predicted uranium prices could hit $50 (U.S.) a pound in the coming "nuclear renaissance" in electric power. Uranium now sells for around $35 (U.S.) a pound. Others, The Globe does not say who, are also quietly talking about a $50 (U.S.) price. This is of great interest to American utilities dependent on uranium they cannot get domestically. Mr. Bambrough's warning spot prices for the fuel might soar "north of" $500 (U.S.) a pound in 2015, fetched extra attention. In Mr. Bambrough's supply-crunch scenario, this would be the result of power plants in China and India competing for the fuel just as Russia stops selling its uranium unless it is tied to contacts for Russian-built nuclear reactors. This would force U.S. utility operators to scramble to keep plants open at any cost. "The supply is just not there," Mr. Bambrough said. "You have to go to mines that are not even there yet in order to try and contract supply."