“You haven't touched on the subject of the uranium miners for a while. Miners, including Cameco and Denison, have followed the recent decline in the price of uranium. Is there any light at the end of the tunnel for holders of these shares?”

Eoin Treacy's view Thank you for this question which may be of interest to other subscribers. David last mentioned uranium miners on October 25th and they remain in extended base formations. Some of the issues facing the sector include the Japanese tsunami which had a damaging effect on sentiment and nuclear industry expansion plans globally. The low price and widespread availability of natural gas which is competitive with nuclear in the USA and has fewer environment concerns is also a challenge.

Some of the more bullish points are that the Russian HEU agreement expires at the end of 2013 and there are currently no plans for an extension. The Chinese are due to restart permitting new plants relatively soon. The Japanese may have no choice but to restart more of their reactors because of the high price of importing other fuels. Sentiment towards the sector is moribund and once economic activity picks up so should speculative interest.


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