RE:RE:About half way through?This will not turn off. The almost daily increase in spot price is a sure sign utilities are scrambling to lock in Uranium. The World Nuclear Association report has awakened many sleepy fuel buyers whose entire career have been told that there is plenty of Uranium. It is dawning on them that this has changed. If they fail to get Uranium for their reactors I am afraind someone is going to have to tell the CEO that his or her power plant has to shutdown becaqse there was not enough fuel. We are fast ap[proaching that scenarion right now. Last time there was a major mine coming into production (Cigar Lake) which flooded. This time there are no new mines.....nothing for at least 4 years.
As the real fuel shortage begins to bite we will fly past $70/lb and into the 100's. Where will it peak? If you do a simple compound inflation calculation on the last spike of around $147/lb you get to well above $200/lb. Due to the lack of mine capacity as well as enrichment and conversion facilities in my opinion $200/lb is easily within range and I suspect it will remain much higher for much longer because mines take so long to get into production in the Uranium business. NXE's Arrow will help but it is likely the world will need another 6 Arrows to meet demand. We live in interesting times.