Uranium Spot Price Up 15% Last Night – Here’s Why
Uranium stocks surged yesterday.
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.
The uranium bull market is coming faster than we thought…