Wednesday, July 12, 2017

Uranium prices up for sixth straight week

Economic Calendar:

TradeTech’s weekly spot uranium price indicator climbed last week for the sixth consecutive session; however, the rise was very modest. Uranium spot prices advanced by just $0.05 to reach $20.25 per lb. The six-week rise has taken uranium prices up just $0.75.


In company news, Uranium One (TSE:UUU) confirmed that its subsidiary Mantra Tanzania has applied to suspend the Mkuju River project in Tanzania due to depressed uranium prices. Uranium One, an international mining company of Russian state nuclear energy corporation Rosatom, said its subsidiary Mantra Tanzania applied to suspend the project in December last year.

The request to suspend the project is purely a result of depressed uranium prices, according to the company. Commenting on the request, it said: “Mining in this depressed environment will have no benefit to the people of the United Republic of Tanzania, or the Company, as the project financials make it infeasible to commence such mining at current price levels.” 

Although up for six straight weeks the price has only advanced $.75/lb. so I am not getting to excited. Nevertheless, as the article mentioned another mine is shutting odwn taking more supply off the market. That is what we expect to see if the supply/demand balance is going to normalize.

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