Big Uranium Price Jumps Due to Worldwide Production Cuts
UEC President & CEO Amir Adnani, discusses recent market developments with Swiss Resource Capital AG.
Key takeaways:
Over the past two weeks, the uranium market has experienced a significant supply shock from the COVID-19 pandemic, resulting in a monthly production cut of over 50%.
The black swan type event has been pushing the uranium price higher towards the $30 level, not seen since 2016.
There is now no commercial uranium production of consequence in North America with Canadian and U.S. projects being taken or already offline.
New demand from the U.S. government to build up a national Uranium Reserve appears imminent as was outlined in the Trump Administration FY 2021 budget announcement. The budget request includes a 10-year $1.5B program that would be used to purchase U.S. origin uranium and conversion services.
Uranium Energy Corp is well positioned to contribute to this program with fully licensed, low cost, In-Situ Recovery projects.
