| Under the former Greenpeace co-founder's | | | | rises to $100 per lb (a further 150 percent |
| scenario, Bambrough extrapolated the World | | | | increase), the cost of nuclear power would only |
| Nuclear Association (WNA) projections for 2030. | | | | rise by approximately 6.75 percent." Fuel costs for |
| Nuclear power demand is then expected to soar | | | | coal and gas are 35 and 73 percent, respectively. |
| from the current 368 Gw, produced by the | | | | And they release massive doses of CO2 into the |
| world's 441 nuclear reactors. He computed, using | | | | air. |
| Moore's premise of a 60-percent nuclear-reliance, | | | | What else can be done aside from a worldwide, |
| that nuclear reactors would produce 18,900 Twh | | | | unanimous endorsement of nuclear energy? There |
| of the total power demand in 2030, which the | | | | may still be difficulties ahead. Lovelock told us the |
| WNA estimates might reach 31,500 Twh. To | | | | CO2 emissions problem should have been |
| produce that much electricity, Bambrough | | | | addressed 50 years ago. It takes between 50 and |
| calculated that by 2030, nearly 2700 nuclear | | | | 100 years for the atmosphere to cycle through |
| reactors will be required across the planet. | | | | those emissions. |
| Envisioning the "potential" of a 600-percent | | | | The Sprott report co-authors concluded there will |
| increase in nuclear reactors online, about 25 years | | | | be supply problems for food, water and energy. |
| from now, Bambrough also calculated how much | | | | They envision problems with national security, |
| uranium would be required to fuel those reactors. | | | | soaring grain prices, and greater investments |
| According to Bambrough, current global uranium | | | | needed to provide water and energy to those |
| mining production rests at about the 100 | | | | who aren't buried ten feet deep in their |
| million-pound level. By 2030, if nuclear energy | | | | indebtedness. They foresee a currency collapse |
| expands as Moore insists it should, then the | | | | as central banks flood the money system to |
| world's utilities will require on the order of about | | | | provide liquidity. And, of course, gold will resume |
| 1.3 billion pounds every year. With regards to a | | | | the role it has always held during times of |
| planetary build-up of nuclear energy, Bambrough | | | | overpowering economic calamity. |
| wrote, "The supply of uranium may well be the | | | | Is this too much reality for you? Should we just |
| most limiting factor." | | | | wait a while and see what transpires? We might |
| This may become the new case for a sustained | | | | not be so lucky. Some experts, such as the Chief |
| rally in the spot uranium price. Bambrough wrote, | | | | Claims Strategist for Swiss Re, wrote in a March |
| "Much higher uranium prices will be required to | | | | 2006 CERES report, "Global warming has |
| attract enough investment capital to meet the | | | | accelerated from a problem that might affect our |
| growth in demand." This has already begun, as | | | | grandchildren, to one that could significantly disturb |
| uranium prices have skyrocketed for the past six | | | | the social and economic conditions of our lifetime." |
| years. Long-term uranium recently traded as high | | | | In other words, Messrs. Sprott and Bambrough |
| as $46/pound, exponentially higher than the spot | | | | are correct in their assumptions and conclusions. |
| price of $6.40/pound in late 2000. Bambrough is | | | | The time to get moving is today, not thirty years |
| correct in his conclusion. Building an underground | | | | from now. |
| uranium mine costs far more than it did in the | | | | For a second opinion, before completing this |
| glory days of uranium in the 1950s. Environmental | | | | column, we forwarded the Sprott report to David |
| regulations force miners to spend more and take | | | | Miller. He wears many hats, including a consultancy |
| longer in constructing any uranium-producing | | | | to the International Atomic Energy Agency, |
| facility, including an ISL operation. | | | | third-term Wyoming legislator, president of |
| "Marginal mines will become price setters," wrote | | | | Strathmore Minerals (TSX: STM) and a walking |
| Bambrough. This helps explain why the Sprott | | | | encyclopedia on uranium, geology, nuclear power |
| Asset Management funds have invested heavily in | | | | and politics. He responded quite bluntly, "The fuel |
| companies such as Strathmore Minerals (TSX: | | | | of the 19th century was coal. The fuel of the |
| STM; Other OTC: STHJF), Energy Metals (TSX: | | | | 20th century was oil. Both have run their |
| EMC) and others. When we first interviewed | | | | economic course. Uranium is on its way to |
| Strathmore Minerals Chief Executive, Dev | | | | becoming the energy fuel of the 21st century. |
| Randhawa, in June 2004, he told us his strategy | | | | The crescendo of countries clamoring for nuclear |
| was to capitalize upon a sustained rally in the | | | | energy has been growing louder in each year of |
| uranium price by acquiring properties which were | | | | this new millennium." Perhaps, we may yet see |
| uneconomic at the sub-$20/level. His strategy has | | | | Moore's energy mix come to pass, or at least |
| rewarded shareholders and continued to do so | | | | dramatic growth in the nuclear sector to more |
| with each uptick in the spot uranium price. If | | | | closely approach his targeted percentage level. |
| Bambrough's conclusion is accurate, the junior | | | | One key question remains unanswered, during our |
| uranium developers could very well become the | | | | two-year investigation into uranium and nuclear |
| Internet high-fliers. That conclusion was reached | | | | energy. Sure, we've gotten a lot of answers, but |
| by newsletter writer James Dines, this past | | | | we remain unconvinced. No one has satisfactorily |
| November, and repeated numerous times in | | | | answered this question: "Will there be sufficient |
| multiple reports by others. | | | | supplies of 'already mined uranium' and current |
| "Large low-cost producers may be able to reap | | | | mining production available to the world's nuclear |
| Middle East-like oil profits for decades," wrote | | | | reactors to meet the anticipated global demand |
| Bambrough. If the spread between production | | | | for electricity?" The make-break word in the |
| costs and spot uranium keeps widening, the | | | | above question is "available." Uranium is nearly |
| smaller uranium companies are going to hit it big. | | | | everywhere. There are about 1.7 billion pounds of |
| Those companies, which postponed uranium | | | | 'already mined uranium' in the world's inventories. |
| mining, will be selling their uranium production at | | | | But will there be enough uranium made available |
| the kind of profits-to-production spread | | | | to the utilities when the time comes? |
| ExxonMobil or ChevronTexaco now enjoy. | | | | If there is not, today's spot uranium price could |
| Rising uranium prices are probably more of an | | | | look comparable to gasoline prices, circa 1965, at |
| irritation for fuel traders than the utilities, who | | | | some future point. |
| worry about construction costs. The actual fuel | | | | Go to the Lung Pain website for information on |
| cost to operate a nuclear power plant borders on | | | | pain in the lungs. Visit the Meaning Of Roses |
| the absurd. Bambrough wrote in his report, "Fuel | | | | website for info on symbolism of roses. Want to |
| costs (for nuclear) are merely 4.5 percent of total | | | | learn everything on good lab values? Visit the |
| costs, even with uranium at $40 per lb. If uranium | | | | Normal Lab Values website. |