Australasian Investment Review provides an overview of a recent UBS report on the outlook for uranium in 2006.
UBS released a report this week entitled "Uranium Becomes Topical in 2006." In a major scoop, UBS noted there is growing political response to climate change and there are increasing efforts to limit global carbon emissions, as highlighted at the greenhouse summit in Sydney last week. Nuclear power has zero emissions, apparently, which is likely to increase its use in energy generation.
UBS expects to see the uranium price continue to surprise on the upside. (Surprise who?). The analysts are tipping a rise to Us$40/lb. by the end of 2006, up from the current US$36.25/lb. They cite a recent Ux consulting report that suggests there will actually be enough demand and momentum to push the price beyond US$40/lb., until hedge fund profit-taking and cooling demand will lead to a pullback.
UBS released a report this week entitled "Uranium Becomes Topical in 2006." In a major scoop, UBS noted there is growing political response to climate change and there are increasing efforts to limit global carbon emissions, as highlighted at the greenhouse summit in Sydney last week. Nuclear power has zero emissions, apparently, which is likely to increase its use in energy generation.
UBS expects to see the uranium price continue to surprise on the upside. (Surprise who?). The analysts are tipping a rise to Us$40/lb. by the end of 2006, up from the current US$36.25/lb. They cite a recent Ux consulting report that suggests there will actually be enough demand and momentum to push the price beyond US$40/lb., until hedge fund profit-taking and cooling demand will lead to a pullback.
