Thursday, August 16, 2007
Fission Energy (FSSIF) bought some
Reactors (i.e. demand) have troubles coming online due to rusty technology. The same goes for uranium mines (i.e. supply), perhaps even more so.
Rising demand doesn't depend on any one country or construction company.
Demand has been increasing fairly steadily over the years without building new plants. Capacity has been quietly increased in lots of nuclear plants.
Supply is way below demand even in the current state of things.
Supply is not as elastic as it may seem. It takes a very long time to go from exploration to pulling uranium out of the ground.
A lot of those pounds of uranium mentioned would cost a great deal to extract. When demand increases, the prices will be set by the providers with the higher costs.
The causes involved in the spot price demand and supply are totally different from the long term demand and supply.
There are limited mining engineers having industry knowledge from decades ago. Employing them is key to moving to production faster rather than stumbling over the same issues that others stumbled into long ago.