The growing uranium supply deficit, currently being accelerated by COVID-19 pandemic related production cuts, has seen the price for uranium skyrocket – making it the world’s best-performing major commodity right now.
With the suspension of operations at four notable uranium mines in March and April, the spot price has surged to US$33/lb in May from $24/lb at the start of the year on the back of this tightening global supply.
This situation is unlikely to change in the near future, which could drive the price higher as long-term demand is set to continue, says Toronto-based Red Cloud Securities. CHANTELLE KOTZE reports.
The four uranium mines in question include the Cigar Lake mine in Canada, suspended on 23 March, the Rössing and Husab mines in Namibia suspended on 28 March and Kazakhstan-based Kazatomprom’s suspension of operations on 7 April.
Red Cloud Securities (formerly Red Cloud Klondike Strike), a modern day, next generation brokerage firm focused on providing unique and innovative financing alternatives, growth opportunities and market exposure for mining companies, recently hosted a webinar to explore the drivers behind the uranium bull market further.
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