SOURCE: U3O8.biz

February 22, 2007 03:00 ET

Record Increase in Uranium Price

VANCOUVER, BC -- (MARKET WIRE) -- February 22, 2007 -- Ux Consulting Company, LLC and TradeTech have increased U3O8 prices US$10 to a record US$85 per pound.

This US$85 spot price marks a new record for uranium confirming research analysts' predictions that mine production continues to fall short of demand, and that inventories being sold into the market reflect the supply-demand deficit.

According to Adam Schatzker of RBC Markets, investors can expect to see the price of uranium continue to rise throughout 2007 and predicts the average price will be US$100 per pound this year.

As of December 2006, there were 435 reactors currently in operation producing 368,246 Mwe of power. There are 28 reactors under construction, 64 planned and more than 158 have now been proposed globally with more added to the every month.

The 435 operating reactors require approximately 180 MMlbs of U3O8 equivalent. 110 MMlbs of U3O8 is supplied by primary production with the balance being made up from secondary sources including mixed oxide (MOX) fuel, national and utility held inventories (both strategic and commercial), Russian LEU exports, recycling programs, Tails assay adjustments, DOE sales and HEU.

Buyers are eager to stockpile supplies at fixed prices, while sellers view the uncertainty about remediation efforts by Cameco Corp. at its Cigar Lake uranium project as an opportunity to hold out for higher prices.

"Uranium is in a super bull cycle, fueled by supply shortfalls amid rising demand as the world increasingly turns to nuclear for clean, commercially viable, long term energy solutions. Today's increase in the spot price is a reflection of the uranium shortfall and provides investors with added confidence in the uranium sector," says Mr. Gomez.

U3O8 Media Inc.'s Website www.u3o8.biz delivers original market analysis, breaking news, and insightful editorial on the economic, political, and environmental issues fueling the reemerging uranium industry. U3O8.biz also provides valuable market and company research, as well as a listing of leading public mining and exploration companies at the forefront of the uranium business.

Contact Information

  • For further information contact:

    Mr. John Gomez
    President
    U3O8 Media Inc.
    Tel. (604) 723-9382

    Mr. Richard Manley
    Director of Business Development
    Tel. (604) 803-7751

    Mr. Robert Simpson
    Managing Editor
    Tel. (778) 839-9512