"I never thought I say," said Dustin Garrow, marketing director for Paladin Resources (TSX: PDN) at the end of his presentation includes a public utility located within the nuclear fuel. So the expected increase in prices for uranium in the coming months will be between $ 80 and $ 100 per pound. An adviser to the field for a long time Garrow acts as an intermediary between the producers of uranium fuel and utility corridors.
The conference on the Platts Nuclear Fuel StrategiesLast week in Washington, DC, was to supply the United States, but sobering to deal with a variety of suppliers and vendors for this educational workshop. The jump in the price of uranium to $ 55.75/pound, the weekend was a surprise to those who participated. The mood of the conference was lively and exciting as a constant demand continues to grow to provide "active uranium. Analysts have revised their prices upwards expectations aheaduntil the end of this year and the year 2007.
Feedback on the site of TradeTech uranium transactions, the company was published, wrote: "Many sellers are still looking for ideas to offer the market price of the place of delivery and the buyer for continuing a trend that shows an increase prices, in order to provide stability of prices. The combination of the buyer is different, with utilities, manufacturers, traders and speculators seeking market purchases. The question remains strong and long-term uraniumexert pressure on uranium prices on the spot. The spot uranium market should remain active until October. "
We talked more with Gene Clark, CEO of TradeTech, by e-mail after chatting briefly to the Platts conference. He said the company was publishing, adapting assumptions about the projections for the prices of public services in a short time to study the uranium market. "We expect the fourth quarter clearly continue to exceed all previous expectations," said Clarkus. Activate express our action, which is determined by telephone interview of uranium actually offered on the market, has returned to its historic low in the second quarter of 2004. "Earlier this year, estimates Clarkfield uranium price could reach $ 55 per pound.
Clark believes that it is an important prognostic factor for uranium prices. "Many potential sellers to keep the supply of uranium, making it" inactive "because they are satisfied with their level of sales of theseThis year, "he said. Said:" When is the entry of a new source of supply of goods for the rest of the year, should remain low. "The main source of the request until the end of the year is likely that traders and hedge funds, Clark informed us. According to the state of demand as the main users of public services 'must have' category in its sole discretion purchases .
World Uranium Mining Trends and Prospects
"We tried to encourage utilitiesThe companies are working closely with junior mining companies, "said Michael Knapik, Chief Editor of Platts NuclearFuel before the group of uranium mining began their presentations. In a presentation earlier that morning, Charles Peterson, a partner with the DC office of Pillsbury Winthrop Shaw Pittman LLP spoke about the security of future supplies of uranium. Public services are related to the purchase of low-cost uranium from Canada, Australia and Kazakhstan. Peterson was a consultantUtilities begin talks with the speculators who have been purchasing uranium, because the price has skyrocketed. "Some cooperative utilities with the speculators," said Peterson.
As reported during the conference last week, holding the Vice President of Economics Patricia Mohr, Scotiabank uranium remains a bright spot in the commodity markets in 2007. It noted the raw materials that your bank will probably peak in August, but he felt the uranium, the exception "to thethis. "Mohr cited inadequate supply of data mining as the main driving force behind the dramatic increase in the price of 'uranium. Uranium Producers contributed only 65 percent demand last year, while the rest came from sales of inventory and mixed by uranium from dismantled Russian nuclear warheads.
Paladin and Namibia
Dustin Garrow said Paladino an incredible success story, discussing how he was contacted by the chief executive of the company in 2003 when the stock was trading three centsStock options offered. Three years later, Garrow remains on Paladin's growth prospects in Africa and elsewhere enthusiastic. This is a tribute track environmental legislation in Namibia and the rapid Paladin Langer Heinrich uranium project that the company could announce first yellowcake will be presented in early 2007.
In an interesting revelation, Garrow said Paladino, a syndicated loan agreement for the development of the mine and Finance has orderedConstruction. Sections of this loan agreement provides for the mandatory sale of a part of our mining production. The two contracts for the sale of more than 5 million pounds U3O8 for delivery 2007-2012 provides two utilities in the United States. Garrow led the audience by selling cheap to believe is not desired Paladin. The purchase agreement with your partner, Garrow said, "My partner and I combined 50 years in this business, and provided that thisUranium to our clients prefer. "
Currently produces about seven percent of uranium in the world, Namibia, at a connection point in this country reported in March. At that time there were only three. Since then, the number increased to 14, according to a statement from the Ministry of Mines and Energy. We reviewed the progress of Forsys Metals (TSX: FSY), which was reported in March. Forsys spokesman Sean Felker told us: "We control our own resourcesthe calculation and publication in the fourth quarter. "The company is investing this year to demonstrate their resources, while the shares of the Company to fly under the radar of the industry.
A research report by Orion Securities in Toronto, who participated in money for Forsys, suggested that the costs of all-in of the mine was able to project company in Valencia are under $ 25/pound and would have an IIR 30 percent after tax. Early estimates show the project may Valenciaannually produce 2.5 million pounds of U308 over ten years. That was enough for the interest in the passage of a major U.S. utility fuel. Felker said: "We have the process of marketing our uranium after the company started, sent a consulting geologist for the study of property." Due diligence was conducted on site in Namibia. Felker said that the project of his company in Valencia was about 30 months away from where the champion Langer Heinrich today.
Forsys appears to be following the example of the Paladin. AsThe success was the development of Paladin in Namibia, the company moved in the near completion of a bankable feasibility study of the Kayelekera uranium project in Malawi. Now, Forsys is considering the properties of uranium from Africa. Both companies and developing uranium projects in Africa, through the open cast method to maximize the recovery of uranium from the mine.
David Miller United States requires more uranium
Traditional cut
It is likely that an increase in uranium pricesMethods of generating more expensive extraction of uranium, which, of course, a more solid ground for the price of uranium over the next ten to fifteen years.
The presentation of Strathmore Minerals President David Miller vividly illustrates why the United States can continue uranium mining in the next two decades. It is true that the United States is probably not the glory years of uranium production in 1950 and 1960 back. "The United States can still produce an average of uraniumProducer, "Miller said to the public. He predicted that the conventional mining is the preferred method of ISR mining in the United States, replaced in ten years would be. In the mind, says Miller, predicts conventional uranium mining – through underground mining methods and open – could exceed 16 million pounds per year until 2020.
Miller's research has shown a number of uranium companies, whose annual production could reach about 30 million pounds for the year 2020. In severalDias, the estimates are extrapolated from various production companies – and Uranerz Energy (AMEX: urz), UR-Energy (TSX: URE), Energy Metals (TSX: EMC) and Strathmore Minerals (TSX: to reach STM) — an annual production of uranium in more than ten million pounds after 2012.
Miller told the audience that the United States as a result could produce 20 million pounds more than in the second decade and to help provide utility in the United States for more than a quarter of annual consumption. Has been arguedWith the American producers of uranium, which benefit the development of a utility's internal supply of uranium United States too dependent on foreign uranium.
We spoke with him after his presentation on time and costs of mining uranium in varying degrees. Miller told us, "the United States are about four to six years to reach the ship. Many have been able to overcome obstacles to the issues of mining, or collection of funds for these projects into production." ItA number of stakeholders to participate in various projects of American uranium, "he said without naming anyone in particular." If time permits, it takes so long. "
It is estimated by the studies, has been involved recently that the cost will cost to operate a mill and underground operations of approximately $ 80 to $ 120/ton. An average of 0.1 percent will produce two pounds of U3O8 per ton, but an average of 0.2 percent, the production of feed fourPounds per tonne. Uranium ore cost would yield four pounds per ton of about $ 25/pound. Miller explained that the scores considered the green mountain, SXR Uranium One is currently in the acquisition and rock in the Honda-owned enterprises must be beneficial to use the reference value of $ 100/ton. Both properties have reported economic grades through various studies.
Strathmore Roca Honda property in New Mexico has shown its effects by a National Instrument 43-101. Miller emphasized thehigher percentage of recovery in New Mexico. "In the past, the scholarships Uranium District of New Mexico once again half of the 90 percent," he said. "No mines produced 340 million pounds (historical production in this area) for recovery are poor." In comparison, Miller said that the recovery rate in Wyoming was in the 90 low-rate essay. These figures exceed the average prices for conventional mining, as in the Red Book of the IAEA.
In assessing the cost of production,Discussions with other members of the sector, it is likely that the resumption of their traditional capital and operating costs could double by several uranium projects. While it is possible that some or many of ISR uranium projects in Wyoming, Texas and New Mexico, the operating costs of less than $ 30/pound to enjoy the capital cost of pit uranium mill and reach the United States was 200 million dollars .
Rising costs of labor, environmental regulations, higher initial costs andimpact, including climate-related events such as hurricanes in the mine production of uranium in Australia Ranger, point to a continued rise in prices for uranium in the coming years. At least the public services through a new pricing plan warm-up to take a step back on the uranium market, the price level in the next year or years affected.
Over the next feature of this series, we had conversations during the Platts conference confirm Gene Clark's remarks and those ofothers, that the price of uranium has exceeded the expectations of almost everyone. And it must do so in the coming months. To be continued.
Copyright © 2007 by interview of Commons, Inc. ALL RIGHTS RESERVED.
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