Uranium Spot Price Up 15% Last Night – Here’s Why

Palisade Research December 5, 2017
Category: Research

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. . .

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.

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One Comment on “Uranium Spot Price Up 15% Last Night – Here’s Why”

David says:

Yes true however utilities Will not come to the negotiating table yet. They are oversupplied. So you can sit in a deficit market if you are oversupplied with your storage uranium and not make the contracts which will cause spot price not to move.. The cameco and kazkastan caused temporary spikes . The pain will continue , however prices will not go below 20 dollars per pound no more with the cuts.

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