New Crisis for U.S. Utilities: Uranium Supply Crunch Coming

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New Crisis for U.S. Utilities: Uranium Supply Crunch Coming
Author: Content Desk Distribution Service

 

Sarasota, FL (ContentDesk) January 4, 2006 -- Research analyst Kevin Bambrough for North Americas top-ranked money management firm, Sprott Asset Management, predicts a major crisis ahead for U.S. utilities hoping to obtain fuel for their nuclear reactors, especially for those proposing new reactors. The supply is just not there, warned Bambrough in a recently published interview appearing in StockInterview.com. For people who want to bring on new facilities and contract for it (uranium), its very difficult to do that. Bambrough advised utilities, You have to go to mines that are not even there yet in order to try and contract supply.Bambrough warns of a supply deficit peaking in 2015 that might hypothetically drive uranium prices to an unsustainable high north of $500/pound. The U.S. EIA projects, during Bambroughs timeframe, 67% of the nuclear fuel required to power the 103 U.S.

nuclear facilities has not yet been contracted. Under this scenario, Bambrough sees an investment opportunity with many of the junior uranium companies. He explained the Sprott team has invested in juniors that acquired properties that were once owned and were actively being worked by majors at the end of the 1970s bull market.Because U.S. utilities will be competing, later this decade, with China, India and others for uranium, local utilities may have to rely upon a reliable domestic uranium source for their reactors found with some of the junior uranium exploration companies. Bambrough cited his favorites among the junior uranium stocks, Strathmore Minerals (TSX: STM, Other OTC: STHJF), Energy Metals (TSX: EMC), Tournigan (TSX: TVC), Altius (TSX: ALS) and Western Prospector (TSX:WNP).

Bambrough predicted a consolidation among many uranium exploration companies, which may later lead to a single NYSE listed issue to compete with Cameco (NYSE: CCJ), saying, There are several junior companies that should come together to form large uranium companies to leverage their extremely valuable skilled personnel, lower the exorbitant costs of permitting and exploration, and achieving other economies of scale.The entire interview may be viewed at: www.stockinterview.com/stm-bambrough.htmlContact:StockInterview.comJulie Ickes(941) 929-1640(Source: StockInterview.com).



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