Deficit finally coming in uranium

INVESTORS are well versed in the uranium bull story – an increase in the nuclear fleet, mainly in Asia, will require more yellowcake and, therefore, more U3O8 – but it has, so far, been ignored by the markets

Deficit finally coming in uranium Deficit finally coming in uranium Deficit finally coming in uranium Deficit finally coming in uranium Deficit finally coming in uranium

For all of the promise, spot and contract prices for uranium have lingered around 14-year lows for a good few years as excess inventories more than cover demand.

In such an environment, exploration stories have failed to gain traction - Berkeley Energia, NexGen Energy, Fission Uranium and Vimy Resources being the exceptions that immediately spring to mind.

All of this could be about to change, with the last two months of 2017 seeing some market-leading moves from the world's largest producers.

It started in November when Cameco, which produces about 17% of the world's uranium most of which is sold on long-term contracts, announced it would suspend production for 10 months at its McArthur River and Key Lake operations in Saskatchewan, Canada.

"With the con...