As to when the price of uranium will rise, Rule is
of the view that it may or may not be imminent. "It
wouldn't surprise me to see uranium to trade sideways for 18 to 24 months," he said. "However, it
wouldn't surprise me to see it go up at the end of this
year. Commodities can be priced below the cost of
production for longer than we would have thought
possible given the upfront capital expenditures that
have gone into industries. When you ask yourself a
'when' question as opposed to an 'if' question, then
the real question is: when will I make some money
and not if I will make money."
Rule thinks there is still opposition to nuclear
power in places that believe that they can afford to
do without it. "In the US, where we have abundant
low cost natural gas, moderating energy demand,
and a stagnant economy, I don't see growing uranium demand. In Germany, there will be a growing
indirect demand from obtaining nuclear power from
France and Poland."
"The rational and technically-oriented part of the
environmental community is realizing that nuclear
power has to be part of the energy mix," says Rule.
"There are three and a half billion people in the
8 www.resourceworld.com
JULY 2013
