U308

Uranium is one of the more common elements in the Earth's crust. It is produced in 18 countries worldwide, a majority of the total annual production in 2004 came from mines in Canada and Australia. Uranium does not trade in the open market like other commodities. Buyers and sellers negotiate contracts privately. In 2003 a pound sold for $10 dollars and today it sells for $40 dollars.

There are currently 441 nuclear reactors operating in 31 different countries. 24 more are under construction and a further 41 are planned worldwide. Uranium consumption in 2005 was about 170 million pounds and is expected to increase to 205 million pounds by 2013.

Here is the catch; Total annual production worldwide was 105 million pounds. The entire world market has relied on secondary sources to fill the gap...old inventories...and old decomissioned military weapons. Russia has now turned into a net consumer. Reprocessing of Uranium and Plutonium meets about 6% of current demand......The spot market represents about 17% of Uranium demand in 2005, well above the long term average. Nuclear power accounts for 16% of the World's energy source. Guess what....we are going to have a potential shortage of nuclear fuel this decade!

Barkly is going to continue to chop a bunch of firewood this summer.