URANIUM - PRICING RESERVES Question What is the outlook for uranium pricing? Answer This again is a question that certainly has received much thought on the part of uranium producers, utilities and reactor fabricators, and I do not believe anybody at this time can give a definite answer. Certainly, It is my very strong belief that the price of uranium concentrates will have to rise fairly substantially over the price of some of the recent sales for delivery between now an 1970. These deliveries are being made from presently known and developed reserves and on an incremental cost basis, Cont'd. but presently known reserves are limited, and as the demand for uranium concentrates increases during the seventies, a great deal of exploration is going to have to be carried out, new mills will have to be constructed, and the price of uranium concentrates is going to have to increase in order to provide the incentive to carry out these programs. I am not overly concerned that new reserves will not be found, but it will be costly. The AEC has recently estimated that between now and 1969 approximately $20 million, or $5 million per year, will be spent on exploration and development drilling. Total exploration and development costs are probably at about twice that figure. The AEC feels also that the price of uranium concentrates will probably gradually increase to about the $8 level in the late seventies, and I am inclined to believe that this is a correct appraisal.