Antinuclear

Defeatism emerging in the Australian uranium industry

Uranium plunge clouds outlook  ROBIN BROMBY  THE AUSTRALIAN NOVEMBER 04, 2013   JUST as one quarterly report hit the screen proclaiming uranium was at a new eight-year low, the spot price promptly shed another US50c — and thus was born an even newer eight-year low.Spot uranium sank to $US34.75 a pound during the week, a long way from the record $US136/lb it hit in 2007 during the yellowcake frenzy.

Then we had about 260 listed companies that each boasted at least one uranium project. Now we are left with the brave few.

In this space exactly a year ago, we took a relatively upbeat view of the sector. Australia had finally begun uranium sale talks with India (the new federal government may sign the deal by year’s end) and the new Queensland government had lifted its uranium mining ban.

Wisely, this column said it was too early to make the call that the uranium market had bottomed, but that at least the remaining players in the sector were upbeat.

Ditto for this month: still too early, and the brave are still battling on.

And, if the price falls close to $US30/lb, defeatism could emerge. The quarterly report mentioned above came from Manhattan Corp (MHC), which has an inferred 7800 tonnes of uranium at its Ponton deposit in Western Australia. It’s run by Alan Eggers, who seems never to tire of arguing uranium’s story. –

……..Toro Energy (TOE) is positioning itself to be Western Australia’s first producer. But not at current prices.  http://www.theaustralian.com.au/business/opinion/uranium-plunge-clouds-outlook/story-e6frg9if-1226752388347#sthash.Wv1Mhsta.dpuf

November 4, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium