Two reports out on Thursday suggest better times ahead for the uranium mining industry.
The Globe and Mail quotes Tim Gitzel the new chief executive of Cameco Corp. – the world’s largest producer – who is taking the job on Friday as saying the current slump in uranium prices is a chance for the company to take another look at acquisitions.
The Financial Post reports that RBC Capital Markets believe uranium price weakness will be shortlived and that China, India and South Korea are maintaining their nuclear build plans while Saudi Arabia, the United Arab Emirates, Turkey and Vietnam have all announced new nuclear plans.
Germany’s threats to shut down all of its reactors will be reversed, and the threat of Japan closing its reactors is unlikely, he said.
“Valuations are down … You would scrub projects again. Probably some that you might have looked at six months ago, you’d go back with a different eye again and the numbers would probably look different,” Mr. Gitzel said in an interview on Wednesday.
Rio Tinto vowed not to abandon its uranium ambitions, despite conceding the recent crisis at the Fukushima nuclear power plant would slow growth in the uranium mining and nuclear power sectors for several years.