Monday, May 19, 2014

Cameco shelves new uranium mine

The ongoing bear market in uranium has led Cameco to withdraw an application for a new uranium mine in Saskatchewan.




The spot uranium price has dropped below $30 per pound recently. No one is going to invest in new uranium production at these low price levels. However these low prices will just lead to further supply constraints a couple of years from now and an even higher price at some point down the road. I have been way off on my uranium forecast as I did not think it would take this long for Japan to begin restarting its reactors. Nevertheless with China and other countries continuing to build out reactors and more uranium supply being shelved due to low prices it is just a matter of time until the uranium prices move significantly higher.




The mining company says in a statement on its website that it has also asked the Canadian Nuclear Safety Commission to postpone a hearing scheduled next month into a licence application for the Millennium Mine project.
Cameco cites poor economic conditions in world uranium markets.

Read more at http://www.stockhouse.com/news/newswire/2014/05/17/cameco-(t-cco)-withdraws-canadian-mine-application#if2rUtzSRhsXdumG.99
The mining company says in a statement on its website that it has also asked the Canadian Nuclear Safety Commission to postpone a hearing scheduled next month into a licence application for the Millennium Mine project.
Cameco cites poor economic conditions in world uranium markets.

Read more at http://www.stockhouse.com/news/newswire/2014/05/17/cameco-(t-cco)-withdraws-canadian-mine-application#if2rUtzSRhsXdumG.99

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