Top Stories This Week: Fed Holds Rates Steady, Kazatomprom Guidance Cut Ignites Uranium Sector

Silver Institute projects fourth consecutive deficit in 2024

There were a couple of interesting developments in the silver space this week as well.

On Tuesday (January 30), the Silver Institute said it is forecasting silver demand of 1.2 billion ounces in 2024, which it says would be the second highest amount ever if achieved. The organization points to strong industrial use as a key demand driver, and says it is projecting a silver deficit of 176 million ounces this year. That would be 9 percent lower than 2023's 194 million ounce deficit, but still very high compared to previous years.

"The silver market is forecast to remain in a deficit (total supply less demand) in 2024, marking the fourth consecutive year of a structural market deficit. Although this year’s deficit is expected to ease by 9 percent to 176 Moz (194 Moz in 2023), it will still be exceptionally high by historical standards" — the Silver Institute

Also on the silver side, this week a group of company executives wrote to the Canadian government to recommend that the country recognize the white metal as a critical mineral. The document focuses on silver's role in the low-carbon and digital future, but also highlights its tight supply situation.

Kazatomprom officially cuts 2024 production guidance

Uranium investors got a piece of news they've been waiting for on Thursday (February 1), when Kaztomprom (LSE:59OT,OTC Pink:NATKY) officially cut its 2024 production guidance. The company is now expecting to produce 54 million to 58 million pounds of U3O8 for the year, down from its previous forecast of 65 million to 66 million pounds. The amount is also 20 percent lower than the maximum output levels laid out in its subsoil use deal.

Kaztomprom warned on January 12 that it was expecting to adjust its guidance, so this week's confirmation is no surprise. At the time, the company pointed to challenges obtaining sulfuric acid, as well as delays in completing construction works at newly developed deposits, but said it was committed to meeting its 2024 delivery obligations.

Uranium market watchers are taking the news as yet another positive catalyst in the commodity's seemingly unstoppable story. The Sprott Uranium Miners ETF (ARCA:URNM) and the Sprott Physical Uranium Trust (TSX:U.U) were both on the rise, with the former ending the week up 9.1 percent and the latter closing 12.71 percent higher.