Uranium 2007 Price Forecast
By: James Finch
It is no wonder the research analysts are bullish about the uranium price. Vicky Binns and Daniel Hynes of Merrill Lynch forecast an average price of $75/pound in 2007 and $80/pound in 2008
. The analysts stated, “We don’t see a major trigger on the horizon that will force spot prices down.” Adam Schatzker of RBC Capital Markets remarked
, “There is not a lot of mine production. The inventories being sold into the market are disappearing and we’re actually in a supply-demand deficit.” He predicted the uranium price would average $100/pound in 2007.
Vice President of Economics Patricia Mohr, who told us at the Platts Energy Conference in September of a secular change in the global energy markets, forecast $80/pound average through 2007 and a year ending price close to $90/pound.
She commented, “There has been little improvement in mine production.”
In September, Mohr told us the uranium price would end above $60/pound, but in light of the Cigar Lake episode, she has joined other analysts in ratcheting up her estimates. The same is true of Raymond James
analyst Bart Jaworksi, whose latest estimates show an average uranium price of $90/pound for 2007 and an average of $100/pound for 2008 and 2009
. But, Jaworski did not budge from his price forecast of an average uranium price of $60/pound for 2010.