Sun
SYDNEY, Australia — Uranium spot prices will continue to rise into the new year, hitting $90 US per pound by mid-2007, according to a report by Resource Capital Research.
Over the past three months, the price climbed 23 per cent to $65.50, the Australian equity research company said in its December quarterly report.
It projects the spot price could hit $115 per pound by late 2008.
Resource Capital said junior uranium miners are seeing strong interest from investors, with Canadian companies like Equinox Minerals and over-the-counter traders like OmegaCorp expected to announce uranium projects in the new year.
“Development-stage companies with compliant resources, or those expected to advance to development stage mid-term, are forecast to continue to outperform the sector,” said managing director John Wilson.
Other companies are expected to advance projects rapidly in 2007, including Tournigan Gold Corp., PepinNini Minerals and Berkeley Resources, the report said.
Resource Capital said early stage production at companies like Curnamona Energy, Globe Uranium, Scimitar Resources are, in some cases, showing “encouraging results.”
The study covered 25 global uranium exploration and development companies primarily in Australia, Canada, U.S. and the U.K.
© The Vancouver Sun 2006