Uranium bubble of 2007
In today's world, Uranium bubble of 2007 is a topic that arouses the interest of many people in different fields. Whether in the professional, personal or academic sphere, Uranium bubble of 2007 has become a topic of constant debate and discussion. With the advancement of technology and globalization, Uranium bubble of 2007 has taken on a relevant role in modern society, changing the way we relate, work and educate ourselves. In this article, we will explore different aspects of Uranium bubble of 2007 and analyze its impact on our daily life.
The uranium bubble of 2007 was a period of nearly exponential growth in the price of natural uranium, starting in 2005 and peaking at roughly $300/kg (or ~$135/lb) in mid-2007. This coincided with significant rises of stock price of uranium mining and exploration companies. After mid-2007, the price began to fall again and at the end of 2010, was relatively stable at around $100/kg.
Causes
The upward trend for the prices of uranium was already apparent since 2003. This prompted increases in mining activity. A possible direct cause for the bubble is the flooding of the Cigar Lake Mine, Saskatchewan, which has the largest undeveloped high-grade uranium ore deposits in the world. This created uncertainty about short-term future of the uranium supply. Other factors are speculation triggered by growing expectations around India and China's nuclear programs, and a reduction in available weapons-grade uranium. The bubble coincided with renewed discussions regarding a renaissance of nuclear power.
Impact
The impact of the bubble on nuclear power generation was small, as most power plants have long-term uranium delivery contracts, and the price of natural uranium makes up only a small fraction of their operating cost. However, the sharp fall in prices after mid-2007 caused a lot of new companies focused on exploration and mining to lose their viability and go out of business. Due to increased prospecting, known and inferred reserves of uranium have increased by 15% between 2005 and 2007.
See also
References
- ^ "NUEXCO Exchange Value (Monthly Uranium Spot)". Archived from the original on 2007-12-12. Retrieved 2010-06-30.
- ^ Tony Locantro (2005-06-19). "Uranium Bubble & Spec Market Outlook". GoldSeek. Retrieved 2009-11-23.
- ^ "Uranium a Bubble?". 2007-02-20. Retrieved 2009-11-23.
- ^ a b c Andrew Mickey (2008-08-22). "Uranium Has Bottomed: Two Uranium Bulls to Jump on Now". UraniumSeek.com. Retrieved 2009-11-23.
- ^ "Dynamic Charting Tool - 10 year uranium price in US$/kg". InvestmentMine. Retrieved 2009-11-23.
- ^ "Global Uranium Supply and Demand - Council on Foreign Relations". Archived from the original on 2011-02-05.
- ^ "Uranium 101: Markets". Cameco.
- ^ "Supply of Uranium". World Nuclear Association. August 2009. Archived from the original on 2013-02-12. Retrieved 2009-11-23.
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