Fundamentals Lining Up For Uranium

“We believe that uranium is out of favor,” says Rick Rule, of Sprott U.S. Holdings. Fission Uranium Chairman and CEO Dev Randhawa concurs. If price is any indication, they are right. An obvious conclusion, perhaps, but one worth noting.

According to Rule, the price of the commodity must rise to sustain our present lifestyle.

“We need 195 million pounds, but we produce 130 to 140 million pounds,” adds Randhawa.

And although the source of uranium demand is reasonably stable, the supply is not. Despite recent signs of life, spot uranium remains low by historical standards and, most importantly, below the cost of production for many mines — a fact that’s difficult to escape. Poor economic conditions caused Saskatchewan-based Cameco to suspend its McArthur River mine operations in 2017. It has no plans to resume production.

The threat of domestic mining bans and import tariffs only adds to the problem.

Rule sat down with the Fission Uranium CEO for a discussion on the uranium market and the upcoming Sprott Natural Resource Symposium in Vancouver.

Click here to listen to Rick's interview with Dev Randhawa.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 27025.90 0.09%
S&P 500 2997.95 0.28%
NASDAQ 8156.85 0.40%
TSX 16426.30 0.01%
TSX-V 544.07 0.00%

Resource Commodities

Name Last Change
Gold 1492.26 0.04%
Silver 17.53 0.00
Copper 2.59 2.587
Platinum 901.00 0.67%
Oil 53.93 1.06%
Natural Gas 2.32 0.65%
Uranium 24.88 0.00%