Antinuclear

Paladin Energy’s John Borschoff puts a brave face on uranium market’s disaster

‘Price hikes will be severe’ And uranium’s rise will come sooner, not later, says Paladin’s John Borshoff Resource Clips, by Greg Klein, 31 Aug 13,    

With uranium selling well under $40, “no one will or can move forward with growth, never mind maintaining current production,” said Paladin Energy TSX:PDN managing director/CEO John Borshoff. While summarizing his company’s fiscal 2013 he expressed incredulity about the uranium market’s “absolute absurdity” of low prices despite looming shortages.

He also predicted a dramatic change, emphasizing “the price can only go up sooner than some think.

”…… Addressing a conference call from his Western Australia office on August 30 (August 29 in the Western Hemisphere), Borshoff acknowledged “an extremely challenging year, what with the uranium price falling from about $50 in July 2012 to $35 this month and currently sitting on an eight-year low.”

He attributed this month’s fall in share value to the uranium price, a general weakness in world markets “still waiting by and large for Japanese nuclear re-starts post-Fukushima” and uncertainty about the sale of a minority interest in Paladin’s Langer Heinrich mine in Namibia…….

There’s absolutely no incentive for miners or juniors to develop anything today in anticipation of this shortage. This time around, prices will have to rise and stay there on a sustained basis before the time of the shortfall for the developers to commit, and the end user needs to realize this fact.”

Borshoff said new development will remain stalled “until a price of at least $70 or higher is reached to galvanize some action. It’s only at this price level, and above, that sufficient capital for new development can be raised.”…… http://resourceclips.com/2013/08/29/%E2%80%98price-hikes-will-be-severe%E2%80%99/

August 31, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium