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OPERATIONAL REVIEW
DIGGeRs & DeALeRs PReVIeW MACA.NET.AU

The raging uranium bull

ranium bulls caught satisfaction in
Umid-March when the commodity’s
spot price broke $US60/lb, a high last
seen in early 2011.
The upgraded value wasn’t sustained
for too long, soon flattening back to around
$US50/lb at the time of print, but the sec-
tor’s biggest advocates still received their
latest bout of confidence. Now they ask
each other: “What comes next?”.
Brandon Munro, managing director of
Namibian uranium developer Bannerman
Energy Ltd, believes the key to uranium’s
next milestone lays in the confidence of
utilities contractors.
“The utilities were struggling to un-
derstand whether the new uranium spot Boss Energy reached FID on the
price was an aberration, a new normal or nest,” Munro said. “That’s because they’re Honeymoon uranium project in South
a foundation to greater growth in the spot about to write contracts that will have Australia in early June
price as they’ve seen before, going back to 10-year-plus implications and they want to
2006,” Munro told Paydirt. feel confident in understanding the base ties that it has largely answered their ques-
Uranium spot prices in early 2007 they’re working in.” tion; it was not an aberration, uranium did
reached as high as $US140/lb. Because the uranium price didn’t “drop not drop like a stone...it’s signalling either
“Until the utilities can come to terms like a stone” after achieving $US60/lb, a new normal or a foundation to greater
with [understanding the latest price move- Munro believes that should be a clear growth,” he said.
ment], they’re going to be reluctant to start enough message to the utilities. Uranium arguably heralded a new re-
the new long-term contracting cycle in ear- “That will send a strong signal to the utili- naissance and spawned a legion of self-

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