The expected renaissance of the nuclear energy industry, which has resulted in uranium prices rising more than six-fold since the beginning of this decade, is only in its early stages according to a UK-based fund manager, as reported by Mineweb.com.
Andrew Ferguson, a fund manager at New City Investment Managers (NCIM), says that as the world is re-educated as to why nuclear energy is important and countries begin to make decisions on their future power requirements, nuclear energy will grow and grow.
“I am optimistic this is just the start,” says Ferguson, “Countries are still making decisions on their own energy requirements, and that is not going to happen all in one day.”
Ferguson is not the only one that thinks this way. Hargreave Hale, also in the UK, said in a report earlier this year, that supply is increasing but not fast enough.
“Lead times for new uranium mines are very long, sometimes over 20 years, and there have been no new major uranium deposits discovered in the last two decades,” said the report.
Ferguson, along with Richard Lockwood, is investment advisor to the Geiger Counter Limited, a recently-listed investment company focused on the uranium and nuclear markets.
Nufcor International, a South African uranium marketing company, also lists as a company this week, allowing direct exposure to physical uranium, 2 million pounds of it to be exact. Geiger Counter has taken a stake in the company.
Total world reactor requirements in 2004 amounted to 172 million lb, according to the Hargreave and Hale report, compared to mine supply of 104 million lb. The rest comes from Russian de-commissioning of warheads and from stockpile draw-downs. Since 2001, the price has risen from less than $7/lb to $45.5/lb currently.
For about 20 years from the early 1980’s the world’s nuclear industry was filling a mine supply deficit with massive uranium stockpiles, that have since been drawn down drastically. Now with the nuclear energy industry growing, new mine supply, while growing, is not sufficient to meet the growing demand.
The World Nuclear Association reckons that within the next 20 years, the amount of nuclear reactors in the world will have doubled from the current 442 in operation, outstripping supply. . .
Andrew Ferguson, a fund manager at New City Investment Managers (NCIM), says that as the world is re-educated as to why nuclear energy is important and countries begin to make decisions on their future power requirements, nuclear energy will grow and grow.
“I am optimistic this is just the start,” says Ferguson, “Countries are still making decisions on their own energy requirements, and that is not going to happen all in one day.”
Ferguson is not the only one that thinks this way. Hargreave Hale, also in the UK, said in a report earlier this year, that supply is increasing but not fast enough.
“Lead times for new uranium mines are very long, sometimes over 20 years, and there have been no new major uranium deposits discovered in the last two decades,” said the report.
Ferguson, along with Richard Lockwood, is investment advisor to the Geiger Counter Limited, a recently-listed investment company focused on the uranium and nuclear markets.
Nufcor International, a South African uranium marketing company, also lists as a company this week, allowing direct exposure to physical uranium, 2 million pounds of it to be exact. Geiger Counter has taken a stake in the company.
Total world reactor requirements in 2004 amounted to 172 million lb, according to the Hargreave and Hale report, compared to mine supply of 104 million lb. The rest comes from Russian de-commissioning of warheads and from stockpile draw-downs. Since 2001, the price has risen from less than $7/lb to $45.5/lb currently.
For about 20 years from the early 1980’s the world’s nuclear industry was filling a mine supply deficit with massive uranium stockpiles, that have since been drawn down drastically. Now with the nuclear energy industry growing, new mine supply, while growing, is not sufficient to meet the growing demand.
The World Nuclear Association reckons that within the next 20 years, the amount of nuclear reactors in the world will have doubled from the current 442 in operation, outstripping supply. . .
