URANIUM stocks have again been battered on the back of Japan's nuclear crisis, but Paladin Energy head John Borshoff has backed the sector to bounce back.
John Borshoff. Source: The Australian
The chief executive said today the facts surrounding the disaster at Japan's Fukushima nuclear plant were being lost in the "sideshow'' debate about heightened concerns about the industry.
He said there was very little leadership and "cool heads'' evident in the commentary around the emergency at the Fukushima plant.
"Clarity needs to be established. On the one hand, the Japanese are being embraced by the world in dealing with the earthquake but on the other, they are also being isolated, with ignorance and fear that is being exhibited by many,'' Mr Borshoff said.
His comments came as Australian-listed uranium stocks took another sharp turn downwards today, following yesterday's recovery, after China halted approvals for new nuclear power plants pending changes to safety standards.
"Clarity needs to be established. On the one hand, the Japanese are being embraced by the world in dealing with the earthquake but on the other, they are also being isolated, with ignorance and fear that is being exhibited by many,'' Mr Borshoff said.
His comments came as Australian-listed uranium stocks took another sharp turn downwards today, following yesterday's recovery, after China halted approvals for new nuclear power plants pending changes to safety standards.
Mr Borshoff said despite the news form China, he did not believe the Asian giant would change its view on nuclear energy, adding Paladin's negotiations with China's CGNPC Uranium Resources had not been affected by the crisis. Rio Tinto's Energy Resources of Australia was down 79 cents or 10.13 per cent, at $7.01, Paladin Energy dropped 52 cents, or 14.05 per cent, to $3.18 and Extract Resources lost $1.67, or 19.74 per cent to $6.79.
Shares in uranium miner Mantra Resources was one of the worst hit, falling as much as 36 per cent after Russia's ARMZ pulled its $1.16 billion bid for the junior. ARMZ advised Mantra the recent incidents at the Fukushima plant were likely to have a material adverse effect on Mantra's business.
Mr Borshoff said despite the strong investor backlash, the outlook for the sector remained positive. He said the 440 reactors that existed would continue and the around 60 under construction would be completed.
"The UK will buck a little bit but there is not alternative. Nuclear is one of the safest industries in the world and will remain so,'' he said.
Dustin Garrow, executive general manager for marketing at Paladin said spot market uranium prices had dropped significantly over the past few days, as physical inventories being held by trading companies were being moved into the market.
The spot price has dropped to $US55 a pound from $US66.50 in just over a week.
"The positive side is the buyers of that material are utilities and primary producers that have needs for physical uranium,'' Mr Garrow said. "That situation will reach an end in the not too distant future and the fundamentals of the market will reassert themselves and the price will start to move back to where it was as recently as last week.''
Shares in uranium miner Mantra Resources was one of the worst hit, falling as much as 36 per cent after Russia's ARMZ pulled its $1.16 billion bid for the junior. ARMZ advised Mantra the recent incidents at the Fukushima plant were likely to have a material adverse effect on Mantra's business.
Mr Borshoff said despite the strong investor backlash, the outlook for the sector remained positive. He said the 440 reactors that existed would continue and the around 60 under construction would be completed.
"The UK will buck a little bit but there is not alternative. Nuclear is one of the safest industries in the world and will remain so,'' he said.
Dustin Garrow, executive general manager for marketing at Paladin said spot market uranium prices had dropped significantly over the past few days, as physical inventories being held by trading companies were being moved into the market.
The spot price has dropped to $US55 a pound from $US66.50 in just over a week.
"The positive side is the buyers of that material are utilities and primary producers that have needs for physical uranium,'' Mr Garrow said. "That situation will reach an end in the not too distant future and the fundamentals of the market will reassert themselves and the price will start to move back to where it was as recently as last week.''
©theaustralian.com.au
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