Antinuclear

Strong and continuing decline in uranium share prices

The average uranium equity has declined 34.4 percent, with the majority of share prices weakening more than 30 percent.

Uranium Equities Lagging in Recovery, By Dave Brown – Uranium Investing News, 27 April 11, The full impact of the Japanese  earthquake and tsunami is yet to be determined. However, the immediate downside pressure on uranium mining, exploration and development companies and even spot uranium prices has been considerable.

…..Broader implications

For investors and industry stakeholders larger  questions remain as to what result the crisis will have on the rate of nuclear power expansion elsewhere in the world and the associated  impact on uranium demand.

The answer to both questions may not be evident for 12 months or even longer; however, it appears likely that the nuclear expansion trajectory will be flatter, due to the possibility of constrained reactor life extensions, and increased reactor capital expenditures driven by an expectation of increased regulatory requirements and associated increased construction time.

……..Employing a quantitative analysis of  the Uranium Stocks Index, every constituent within the industry has experienced a retreat in share prices since the March 11 disaster. …The range of the downside pressure on uranium equities within the index varies from just over 5 percent to 60 percent; however, less than 10 percent of index constituents demonstrated only single digit share price depreciation. The average uranium equity has declined 34.4 percent, with the majority of share prices weakening more than 30 percent.

April 27, 2011 - Posted by Christina Macpherson | uranium