For our recent report on the world's largest uranium producer, read Positive outlook for Cameco Corp. despite
low uranium prices.
Not exact matches
A stubbornly
low market
price and the growing focus on renewables have WA's fledgling
uranium sector on the ropes.
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.
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.
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.
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.
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
When we recommend
uranium mining stocks, we want to see a positive cash flow, preferably even when
uranium prices are
low.
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.
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.
The higher
uranium price reflects the need to move to ever deeper mines, which increases the energy needed to extract the ore, and the shift to
lower - grade ore.
Uranium fuel
prices have been kept artificially
low by an enormous supply from the Russion reprocessing of decommissioned nuclear weapons that is sold at far below market
prices.