SOURCE: U3O8.biz

February 22, 2007 08:19 ET

Uranium Spot Price Climbs to Record US$85

VANCOUVER, BC -- (MARKET WIRE) -- February 22, 2007 -- The UX Consulting and TradeTech spot price indicators have increased U3O8 prices US$10 to US$85 per pound after Tuesday's sale of 100,000 pounds.

The 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 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.

"With aggressive growth, buyers are eager to stockpile uranium supplies at fixed prices, while sellers view the uncertainty about remediation efforts by Cameco Corp (TSX: CCO) at its Cigar Lake uranium project as an opportunity to hold out for higher prices," says John Gomez, President, U3O8 Media Inc. "The increase in the spot price is a reflection of the uranium shortfall and provides investors with added confidence that the uranium sector represents among the best global investment opportunities."

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
    Tel. (604) 723-9382

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

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