Uranium Supply Gap Could Spur Price Upturn

Mining Weekly reported that according to Cameco Corp. (TSX:CCO,NYSE:CCJ) an emerging 15 percent supply gap could mean a prolonged upturn in the uranium price through to the year 2024.

As quoted in the market news:

A decline in secondary sources of yellowcake was forcing the market to increasingly rely on primary suppliers, which, when coupled with unprecedented growth in the nuclear reactor industry, foretold improved market conditions over the medium and long term, investor relations director Rachelle Girard told the Cantor Fitzgerald Annual Global Uranium Conference, in New York.

NYSE- and TSX-listed Cameco expected the market to expand at 4 percent a year to about 230-million pounds of uranium oxide a year by 2024, a far cry from today’s output of about 140-million pounds, excluding projects under development.

The company was the world’s largest publicly traded uranium producer and owned and operated the largest uranium mines in the prolific Athabasca basin of Saskatchewan, from which the company produced about 16 percent of the global supply.

Worldwide, about 63 new nuclear reactors were under construction, but the world’s insatiable need for electricity could see a further 81 more nuclear reactors come on line in the future.

Click here to read the full Mining Weekly report.