Palisade Research - Tue, Dec 5, 2017

Uranium Spot Price Up 15% Last Night - Here's Why

picture of barrels of refined yellow cake uranium

Uranium stocks surged yesterday.

Why?

Because the top two producers of uranium have thrown the towel in. . .

Kazatomprom - the world's largest producer of uranium - declared it will cut output by 20% for the next three years.

This follows last year - December 2016 - when Kazatomprom declared it was cutting production by 10%.

And in an effort to create a floor for the uranium price, Cameco is executing a similar strategy by shutting down and suspending production at McArthur River and Key Lake milling operations in northern Saskatchewan.

Kazatomprom produces over 40% of the world's uranium, while Cameco's McArthur River produces 12%.

Together, the cuts reflect 20% of the world's production. . .

area graph showing the potential uranium supply decline in tonnes per year from Cameco and Kazakhstan U3O8 production cuts

This means in 2018, the uranium supply glut will disappear.

While Kazatomprom and Cameco have provided a timeline for these cuts, we think production will most likely be suppressed much longer than what's indicated.

This means an accelerated path to a uranium supply deficit.

Which translates into higher prices. . .

Our uranium experts saw this coming.

David Cates, the President and CEO of Denison Mines, felt that further production cuts by KazAtomProm were possible.

Daniel Major, CEO of GoviEx, discussed the long-term potential of uranium and why the industry needs higher prices to fill the supply gap.

The uranium bull market is coming faster than we thought...

Here are the best ways to leverage your money, into 1,330x-type of gains.

InvestorsGuru.com publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime


Bookmark and Share

 Subscribe in a reader

Our Mobile Site