Borshoff adds fuel to fire

HE PRESCIENTLY exposed his company to one of bigger resource market booms seen in the Australian mining and exploration industry in recent times. But is John Borshoff of Paladin Resources displaying a case of yellow fever with his latest forecast?
Borshoff adds fuel to fire Borshoff adds fuel to fire Borshoff adds fuel to fire Borshoff adds fuel to fire Borshoff adds fuel to fire


Michael Quinn

In an interview screened on ABC’s Inside Business program on Sunday, Borshoff suggested to reporter Alan Kohler that a uranium price of more than $US100 ($A139) per pound was possible.

“The price was $43 in 1978, now we’re at $42 in long term, and that $43 in 1978 represents about $106 today, and I see that there is room for significant increase in uranium pricing,” Borshoff said.

Kohler then asked if that price could go “to $100/lb” again, to which Borshoff responded: “I think it’s not inconceivable. If the supply industry doesn’t get its act together and really start getting new mines on schedule – over and above those which were known four years ago – I believe that there are supply squeezes up ahead, and those supply squeezes will be peaks over and above a rising trend in the price of uranium.”

Uranium was trading below $10/lb pound earlier this century, with the price passing the $40/lb mark last month for the first time since 1980.

Paladin expects to bring its Langer Heinrich project in Namibia online by September this year, with Borshoff also stating he was confident the company will have its second mine in operation (in Malawi) before any of the other companies in the Australian sector get a uranium project into production.