Firming Uranium Spot Price Toward End of First Half of 2008

ERIC ZAUNSCHERB, Canaccord Genuity
"We believe that the spot uranium price will strongly firm towards the end of the first half of 2008 as utilities resume buying, and supply disruptions play into the market...Longer term we expect supply to catch up to demand but not as fast as traditional economists would predict. They evidently do not grasp the current reality that the mining complex is suffering from the lack of qualified professionals, supply shortages including power availability, regulatory hurdles, and challenges of economic nationalism. All these supply constraints will delay the metals markets from achieving balance, consequently supporting 'stronger for longer' markets." (2/13/08)

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