Australia

Details

  • Industry: Energy & Natural Resources, Energy & Mining Services, Mining
  • Type: Business and industry issue, Regulatory update
  • Date: 28/02/2013

Commodity Insights Bulletins

Commodity Insights Bulletin
KPMG's series of quarterly global bulletins provides insight into trends, issues and changes within the key mining commodity sectors.

Uranium Insights: Q3 & Q4 2012 

KPMG's Quarterly Global Commodity Insights Bulletin on Uranium provides a succinct overview of recent global events and outlook for that commodity, details of major developments and projects, and recent regulatory changes.
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Key insights

  • The continued softening of the uranium price linked to market visibility on demand post Fukushima, global decreases in commodity prices and worldwide economic concerns has led to ongoing uncertainty for investment decisions.
  • The major mining houses are reconsidering the extent of their uranium resolve whilst the junior explorers risk grinding to a standstill without access to funding or joint ventures.
  • Uranium spot prices in Q4 2012 decreased trading in the range of US$41-44/lb, from Q3 2012 price range of US$47–50/lb.
  • Surplus uranium supply and lower demand from the utilities, is believed to be the major disruptive force in the industry, thereby causing a decrease in uranium prices and depressing market capitalisations.
  • Despite reduced uranium spot prices, the long-term uranium prospects remain bullish.
  • While there is concern in the uranium market about the falling prices, the demand continues to remain high, primarily driven by the demand pull from the Asian economies. Both India and China are considered to be aggressively working towards securing uranium for their civilian nuclear programs.
 

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