Globe and Mail Report!!!
Globe says Cameco facing a spooky uranium outlook
2013-10-31 07:50 ET - In the News
The Globe and Mail reports in its Thursday edition that uranium prices are at near record lows. The Globe's Tim Shuffelt writes that analysts believe a scarcity of uranium is on the way. That realization has not yet dawned on investors, notes Mr. Shuffelt. He says until investors figure that out, uranium stocks will remain cheap. Raymond James analyst David Sadowski says: "We forecast a fairly large global uranium shortfall toward the end of this decade. ... So there's a 'buy' recommendation on the space." For many investors, Cameco is the uranium sector. Cameco accounted for 14 per cent of global supply last year. A rebound in uranium prices depends largely on Japan restarting its idle reactors. The Globe says the uranium market really misses Japan. Since Japan suspended its nuclear program in the aftermath of the 2011 Fukushima disaster, spot prices for the metal have plunged more than 50 per cent and now sit at about $35 (U.S.) a pound. A big chunk of global demand for uranium disappeared when Japan shuttered its 50 nuclear reactors. But Japan continued to honour its uranium contracts, which has resulted in an enormous stockpile of about 100 million pounds, says Mr. Sadowski.