VIDEO - Nick Carter: US$24 is a Pretty Hard Bottom for Uranium

Energy Investing
Uranium Investing

“We need to sort of break that US$26 resistance point,” Carter said. “But we do think we could potentially push as high as US$29.”

There are many potential catalysts for the uranium sector in 2020, but Nick Carter, executive vice president of UxC, forecasts that prices will only rise roughly US$5 to US$6 this year.

Speaking at the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, Carter noted that the market is changing, which could be signaling a supply shortfall.

“We do see a tightening of supply,” Carter said. “I think 2020 will be a little tighter, and then continuing into 2021, but then starting in 2022 through 2025 we could potentially see some supply deficit. But we do think that could easily be made up for by a ramp up in Kazakh production.”

In terms of price, Carter thinks the market has reached a “pretty hard bottom” at the US$24 per pound range, a price at which the spot uranium price has been rangebound for much of the last year.

“We need to sort of break that US$26 resistance point,” Carter said. “But we do think we could potentially push as high as US$29.”

The wait for a verdict on the US Section 232 investigation prevented market growth last year, and this year US President Donald Trump has proposed that a uranium stockpile be funded with US$150 million annually for 10 years. Some think this could be a price catalyst; however, Carter is not optimistic that the domestic surplus will raise prices.

“Unfortunately, if that happened, it would probably be to the downside, because you’re adding production into this market. So if they’re just producing the annual amount required, a contract is probably not going to have any direct impact on the market.”

Watch the interview above to find out more of Carter’s thoughts on nuclear restarts and why this may not be the year that utility companies return to market. You can also click here for our full PDAC playlist.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

The Conversation (0)