Gissen and Berol: Uranium Demand Outstrips Supply

- May 3rd, 2010

SeekingAlpha reports on uranium markets: its demand and supply.
TER: Malcolm, you had an interview with TheStreet.com last year and you were quoted as saying, “Uranium is supposed to be the hottest commodity.” It’s about six months from when you made that comment. Uranium has gone down. Where do you expect it to return to, do you […]

SeekingAlpha reports on uranium markets: its demand and supply.

TER: Malcolm, you had an interview with TheStreet.com last year and you were quoted as saying, “Uranium is supposed to be the hottest commodity.” It’s about six months from when you made that comment. Uranium has gone down. Where do you expect it to return to, do you expect it to return to being a hot commodity?

MG: I don’t like the concept of the “hot commodity” because that’s not how we invest. The demand for uranium currently outstrips supply, in terms of the amount of uranium that is mined and the demand for it. I think the imbalance will continue. In fact, our analysis projects that this supply/demand imbalance will become more severe because there are several dozen nuclear power plants either being constructed or in the planning stage right now. Over the next five years, a number of them will come online, and they will start to demand uranium. The sources of uranium around the world are not ample. So there’s going to be a need for more uranium within the next five years. Where you have an imbalance between supply and demand and the supply is not meeting demand, we know that prices will rise. So I believe that within the next few years we’re going to see considerably higher uranium prices.

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