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Uranium: A Question of Time

Bob Kirtley MSc.
bob@uranium-stocks.net
February 11, 2007

The British government recently announced its interest in the need for more nuclear power plants, so where will they get their Uranium?

I recently had the honour of attending the BBC’s television show called Question Time, held in Canterbury, England. The panel was made up of politicians including Ken Clark, Simon Hughes, Harriett Harman, author Frederick Forsyth and another lady who is a member of the House of Lords whose name escapes me. Of the many topics that the programme tried to cover, the nuclear energy topic was the least understood, in my opinion. Simon Hughes a Liberal Democrat wanted to have a long, free and frank discussion about nuclear energy and Ken Clark a Conservative wanted to avoid another oil crises similar to that of the seventies. Time apparently is not a problem. No one mentioned the following relevant factors:

1. We are using uranium at twice the speed we are producing it. The short fall is currently being filled by the dismantling of old nuclear warheads that will dry up shortly.
2. The demand for energy from China, India and Asia is rocketing along with their fast paced modernisation programmes for 3 billion people
3. Oil is in short supply and the oil that is available is vulnerable to a possible war or crisis in the Middle East.
4. Coal is dirty, although there are various coal to oil gasification possibilities none currently being used have been proven to work effectively.
5. Wind farms: how many, where and when? Wind simply does not have the power to compete with nuclear energy. Also even if all the suitable areas for wind farms in the United Kingdom were used, it would still only produce 10% of Britain’s power demands.
6. The price of Uranium has risen from $6.40 a pound to $75 a pound as we write. Why? Could it be that old economic factor DEMAND?

In Queensland Australia where I once lived and worked it is against the law to mine the old yellow cake at the moment. This has not stopped the Chinese doing massive deals to lock in the potential supply if and when the law should change and it will. Has anyone noticed that China has stopped the exportation of a number of metals for example tungsten? If you were in charge of China would you state the true number of nuclear plants that you are going to build and risk causing a stampede to buy uranium? No, you would first secure your supply of uranium far out into the future and then you would quietly tell the world. This isn’t difficult is it? They should be applauded for their vision in these matters.

So, where does all this leave us? Well dear readers we are on the verge of some major consolidation in this market. Each nation, as it awakens to this new crises will flex its own financial and political muscle, as we have never seen before. We believe that we are looking at a uranium price of $200.0 plus in the near future. This will drive the price of uranium stocks through the roof and into uncharted territory. If you thought that DOT COM was a boom get into position and hang on for fortunes will be made, possibly exceeding those to made in gold and silver.

On this site (http://www.uranium-stocks.net/) we share with you our thoughts, analysis, anxieties, our purchases and sales. We will also record our progress so that you are fully aware of which uranium stocks we investing in and why. Do your own due diligence before you put your hard earned cash on the table.

Finally, please feel free to put your comments on our website as this will add balance to the Mother of all Debates, the Coming Uranium Bull Market, ready or not!

Bob Kirtley MSc.
bob@uranium-stocks.net
February 11, 2007

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