The Financial Post reported March 14 that shares in uranium miners fell dramatically today over concerns that the recent nuclear disaster in Japan will affect uranium demand. Stock in uranium company Cameco Corporation TSX:CCO fell as low as 20% today, Uranium One Inc TSX:UUU dropped 30%, and Mega Uranium Ltd TSX:MGA fell 34%.
Adam Schatzker and Fraser Phillips, analysts at RBC Capital Markets, expect that the spot price of uranium will be affected, but not to the extent of the market chill experienced after the Three Mile Island and Chernobyl disasters. They commented, “We believe the outlook for new nuclear builds is still positive. The reactors that are being proposed for construction are of a much newer design than the ones that are failing in Japan.”