2016 wasn’t a very forgiving year for the uranium sector, and its price dropping to 12-year lows in October certainly didn’t look to bode well for the industry.
While it seems as though there wasn’t much to talk about in the uranium market other than its price, there were also noteworthy stories in addition to the fluctuating price. As such, the Investing News Network (INN), has compiled a list of its five top uranium news stories of last year.
Read on to see what top uranium news stories 2016 grabbed the attention of our investor audience.
First on the list is our story on the uranium price forecast and its potential to go up, which was written back in August. At the the time, the uranium price had slumped to an 11-year low to $25 per pound, although analysts projected the price to close 2016 at $30 per pound.
That said, the uranium price didn’t finish the year as expected, and instead ended the year at $20.25 per pound.
In November, investors were again curious as to the state of the uranium price, having dropped to $18.50 per pound–roughly a 47 percent loss from December 2015 to November 2016. Still, there was some good news for the industry, despite a drastic drop in price; Berkeley Energia (ASX:BKY) had previously announced it had started working on a $100 million uranium mine, which will help to keep up with growing uranium demand–in the future.
While the uranium price certainly didn’t reach its expected levels in 2016, its outlook–as stated in the article–paves the way to a hopeful future for the sector.
Near the halfway mark of the year, a number of uranium stocks had performed well despite the tough start to the year for the market. In June, a few junior mining stocks had seen strong increases of over 100 percent, including CanAlaska Uranium (TSXV:CVV), Uracan Resources (TSXV:URC), enCore Energy (TSXV:EU), and Purepoint Uranium Group (TSXV:PTU).
In May, investors were interested in our article about five companies listed in the Global X Uranium ETF, which came into existence in November 2010. The purpose of the article was to educate investors on alternatives for investing in uranium stocks, even during times when the market is struggling.
Last but not least on the top 5 uranium news stories 2016 is the uranium outlook 2017, published in December. While 2016 was indeed a tough year for the uranium market, experts and analysts in the industry said the market outlook is positive–in terms of supply, demand and its price–although a recovery won’t be right away.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.