Sunday, November 06, 2005

Merrill Lynch Uranium Shortage

Uranium has enjoyed its first major rally for 15 years, rising from $7/lb in 2001 to a 30
year high of $29/lb currently. The price rise has been driven by a growing realisation that
a sizeable supply-demand imbalance is looming towards the end of the decade. Lack of
investment coupled with de-stocking drove the uranium price down to unsustainably low
levels and this is now correcting.


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