Perhaps the most obvious answer to the uptick
in uranium prices lies simply in the actions of uranium producing companies to bolster their balance sheets and remain profitable in the low spot and term price environments.
Not exact matches
Thanks
in part to the low - cost
uranium coming from Canada, rising
prices made the Swiss subsidiary tremendously profitable — it earned $ 4.3 billion during the six - year period ending
in 2012.
That's partly because under an arrangement struck years ago, it sells that
uranium at low
prices to a subsidiary
in Switzerland, where profits are taxed at lower rates.
That lower baseline energy demand as well as marginal increases
in supplies has led to lower global oil and gas
prices and more competitive pressure on the
uranium space.
An example is
uranium with the spot
price recently rallying by close to 30 % while most
uranium companies remain stuck
in neutral.
The sole determinant,
in the near term, and by near term, I mean by two or three years, as to whether the
uranium price goes up, is simply the pace of Japanese reactor restarts.
«We are maintaining our Buy rating as we believe EFR should see a recovery
in its share
price as
uranium market conditions improve later this year.»
The recent uptick
in uranium appears to be due to the fact that the commodity
price has been too low for too long with a majority of global production operating below cost.
by Jason Smith Blue Sky
Uranium finds cause for optimism
in Argentina
Uranium prices have plummeted
in recent years, as Japan's nuclear power industry has continued to recover very slowly from the Fukushima disaster
in 2011.
Hard rock deposits by and large are not economic at current spot (or term)
uranium prices, so if you see
uranium at $ 75 or $ 80 per pound
in the coming years (I don't), purchasing shares
in hard rock
uranium development companies could lead to gains.
Prices for the metal have been depressed
in the aftermath of the 2011 Fukushima nuclear accident
in Japan, but the situation got so bad this year that Cameco, the world's largest publicly traded
uranium miner, had to suspend production at multiple mines.
Several developments
in the
uranium space, including the restart of a reactor
in Japan that has been offline since the Fukushima disaster, have primed the commodity for a
price surge.
Uranium as a commodity was basically forgotten about until it marched up to a record high
price above $ 130 USD / lb
in 2007.
This rise created a healthy market for junior
uranium explorers, which was promptly slaughtered when the contract
price tanked
in the wake of the 2008 crash, and was done
in after Fukushima melted down a few years later.
With 436 reactors worldwide consuming 65,000 metric tons (one metric ton equals 1.1 U.S. tons) of enriched
uranium per year, demand for this nuclear reactor fuel outstrips available supply, which has caused
uranium prices to jump from a low of $ 10 per pound a few years ago to more than $ 130 per pound
in 2007 and still more than $ 50 per pound today.
Recent spikes
in the
price of
uranium — perhaps due to renewed interest
in nuclear power as an alternative to fossil fuels as global warming makes its presence felt — have led to a surge
in applications for new
uranium mining permits on otherwise protected federal lands.
But, factoring
in inflation,
uranium prices remain the same today as they were at the dawn of the nuclear era.
Uranium Prices Fall to their Lowest Level
In More than Ten Years: Global
Uranium Price Trends, Reactor Plans,
Uranium Resources and Information Sources Presented at Western Mining Action Network (WMAN) Biennial Conference, San Carlos, Arizona, Paul Robinson, Research Director, November 18, 2016
V.B.
Price speaks with the Paul Robinson, Research Director at the Southwest Research and Information Center, about the legacy of
uranium mining
in New Mexico, how the
uranium market works and who suffers if there's another boom.
An example of what's going on
in the world affecting us is the rise
in the global
uranium spot
prices - the
price per pound of
uranium used
in nuclear power plants - and how it relates to work we do, especially regarding proposed
uranium mining
in New Mexico (pages 8 - 9).
Insight New Mexico's V.B.
Price interviews SRIC's Paul Robinson regarding the legacy of
uranium mining
in New Mexico.
Uranium prices have doubled
in the past year and half, rising more steeply than the
price for oil or any other metal, including gold.
Instead, the
price rise seems to reflect the increasing importance of the secondary, or pre-mined and processed market, as sources of
uranium for use
in the reactor fuel market.
The jump is
in the spot market
price for
uranium oxide, which is also known as «yellowcake,» the form of
uranium produced at
uranium mills and
in situ mines.
Six months after the December 2006 Indigenous World
Uranium Summit (IWUS) at Window Rock, Arizona, the assault by governments and the uranium industry on Mother Earth continues throughout the world.Driven by the inflated, but rising price of uranium on the world market, this perceived economic boom is creating economic blackmail in Indigenous and non-Indigenous communities worldwide, including several in New
Uranium Summit (IWUS) at Window Rock, Arizona, the assault by governments and the
uranium industry on Mother Earth continues throughout the world.Driven by the inflated, but rising price of uranium on the world market, this perceived economic boom is creating economic blackmail in Indigenous and non-Indigenous communities worldwide, including several in New
uranium industry on Mother Earth continues throughout the world.Driven by the inflated, but rising
price of
uranium on the world market, this perceived economic boom is creating economic blackmail in Indigenous and non-Indigenous communities worldwide, including several in New
uranium on the world market, this perceived economic boom is creating economic blackmail
in Indigenous and non-Indigenous communities worldwide, including several
in New Mexico.
«If we have technology to capture
uranium from seawater, we can ensure that an essentially unlimited supply of the element becomes available if
uranium prices go up
in the future,» Schneider said.
Floor
price: A
price specified
in a market -
price contract as the lowest purchase
price of the
uranium, even if the market
price falls below the specified
price.
The call, made
in a submission to Chief Scientist Alan Finkel's review of future security of the NEM, came with the revelation that BHP's power bill at the Olympic Dam copper and
uranium mine
in South Australia is expected to rise by $ US30m ($ 39m) this year because of higher gas
prices and the cost of contracts that offset the risks of power
price spikes.
Set against a continued drawdown of finite
uranium inventories and underinvestment
in mines due to low
prices, we expect
uranium prices to perform strongly though the end of the decade.
From our early blogs about the increase
in uranium mining here
in the U.S. (which has just as much merit today with our country's ever - rising energy
prices as it did back
in 2008) to our more recent blogs,
uranium mining is something we've been watching for quite some time.
Coal, gas and
uranium rich Australia shouldn't be paying the highest power
prices in the world; and it shouldn't be cutting power to businesses and hospitals during hot weather, when demand spikes and -LSB-...]
And nuclear power is just as sustainable as any other power source — even if we only use conventional nuclear fast reactor designs, there is enough
uranium in the oceans and on land (recoverable at
prices that allow the fuel costs of fast reactors to remain the same as today — which is trivial) to last for 5 billlion years, the expected time remaining fo our sun.
Pursuant to the Minister's calculation, the sale
price in a high volume contract will have more impact on the average sale
price calculation than a contract for the sale of less
uranium.