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cigar lake to be delayed longer

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    Interesting article:
    Cigar lake likely to be delayed several years
    Price of uranium likely to rise well above $100

    From his research and interviews with mining executives and other sources, Bambrough believes at least two events are likely to take place. “It’s likely that in the coming days, weeks or maybe even months, Cameco will revise their expectations of the delay being ‘at least a year’ to possibly a few years or more.” He added that utilities “will have extreme difficulty in trying to replace what was likely low-cost uranium expected from Cigar Lake .” He thinks the bill in terms of higher uranium prices collectively could cost utilities more than one-half billion dollars per year. “They may have to pay more than double than what they would have paid under their Cigar Lake contracts,” Bambrough concluded.

    Those who sold uranium production before the Cigar Lake flood could later regret it, he told us. And Bambrough warned, “I expect the spot market in uranium could become fairly illiquid over the next while as traders try to assess the timeline for the Cigar supply.”

    Also, In an email, Miller wrote, “I can see another doubling to over $120 per pound.” He explained, “During dinners when traveling I would always toast to $100 uranium. Up until this past summer, this was wishful thinking for an up-and-coming uranium producer like Strathmore Minerals. Now I realize we will likely hit $100 per pound.”

    What is Miller’s reasoning? “While there is plenty of uranium in the ground around the world at this price, the problem is still getting permits and getting them into production,” he wrote to us. “My guess would be a spike above $100, maybe even above $150.” But Miller also cautioned, “I do fully expect the long term price, after new production comes on line, to be around US$60 per pound. It is a race to production now. It may be dawning upon utilities that many new producers are needed for a diversification of reliable uranium supply.”


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