Recent activities and trends in the uranium market

Concerns about the impact of hydrocarbon use on climate and global warming are significantly growing. Furthermore, we are all well aware that security of supply is increasingly an issue. In this context, it is now principally recognised that nuclear energy has to be back on the agenda. All in all, the prospects for the nuclear power industry and thus for the uranium activities is very positive for the coming years. The changes that have taken place in the international uranium market during the past several years are remarkable. Since 2002, the uranium prices have increased more than tenfold. The spot market price of uranium began an increase from about USD 9/lb U3O8 in mid 2001 following a fire at the Olympic Dam mill (Australia) in October 2001 and was propelled in subsequent years by a series of interrupting events, such as the mine shaft flooding at the McArthur River mine (Canada) in April 2003, the threat of the early shutdown of the Rossing mine (Namibia) and the Ranger mine (Australia) in 2003, the decision of Techsnabexport (Tenex, Russia) in October 2003 to terminate sales of UF6 to the US trading company Globe Nuclear Services and Supply GNSS Ltd. (GNSS), and finally the complete flooding at the developing Cigar Lake mine (Canada) in October 2006. With the emergence of hedge funds and investors, that began in late 2004, increased uranium demand and upward pressure on market prices were further stimulated. What about the recent events and trends in the uranium industry? Are the uranium producers and the utilities well prepared to meet all the challenges associated with developments in the uranium business? And what about the risks, uncertainties and other factors that could affect the developments in the uranium industry and uranium markets?.