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Deferral of ~45mlbs per annum Uranium production good for near term mid tier producers?

September 13th, 2012

I expect that we will see a significant bounce in our near term new uranium producers on the back of BHP’s et al reduction/deferral of ~40m-45mlbspa U3O8. We should also see a bounce in similarly placed copper producers and as such BHP’s deferral of its expansion of Olympic Dam could turn out to be a much needed boost for our mid-cap uranium and copper producers. I also think that Australia’s on-shore uranium plays will not get a new mine into production within the next few years and that makes me think we should be looking at off-shore uranium mining friendly countries and fortunately we are more than well endowed with ASX off-shore elephantine uranium plays with great prospects for near term (< 5 years) production. Copper producers should find it much easier and of those about to produce CDU, AOH and a couple of others look to be more than a little interesting.