Demand for uranium is growing at the same time supply is becoming less certain, said Cameco President and CEO Tim Gitzel July 28.
“Since 2011, about 1.6 billion pounds of uranium have been consumed in reactors, and only about half of that or 800 million pounds have been placed under long-term [utility] contracts,” Gitzel said in a second-quarter earnings call. “This has led to a growing wedge of uncovered uranium requirements,” he said.
“We’re also seeing increased demand for uranium from financial funds and junior uranium companies,” Gitzel said.
“Through the end of June this year, more than US$550 million has flowed into the uranium market via junior uranium companies and financial funds. This money has been used to purchase approximately 16 million pounds of uranium with more expected.”
At the same time, however, “uranium supply is becoming less certain due to years of persistently low prices,” he added. Uranium mines around the world have been mothballed for several years due to low prices.