Categories: Energy / General Market Commentary
Topics: General Energy / General Market Commentary

Uranium Outlook 2017: CEOs Expect a Better Year

Uranium Outlook 2017: CEOs Expect a Better Year

The uranium price dropped to 12-year lows in October 2016. Looking ahead, some companies in the sector have higher hopes for what's in store in 2017.

Without a doubt, 2016 was an ugly year for the uranium industry as its price dropped to 12-year lows of $18.25 per pound in October. 

Since then, the price has made a slight recovery to $18.75 per pound–although that’s still almost half of what it was at the end of 2015, at $36 per pound. To that end, uranium companies in the sector have unsurprisingly been impacted by the resource’s rock-bottom prices, with some saying things can’t really get much worse from here.

Of course, the uranium price isn’t the only contributing factor in the industry throughout 2016.

As such, the Investing News Network (INN) reached out to several company executives and CEOs in the space to learn more about what impacted the commodity.

Below, Ted O’Connor, CEO of Plateau Uranium (TSXV:PLU), Craig Parry, CEO of IsoEnergy (TSXV:ISO), and George Glasier, director, president and CEO of Western Uranium (CSNX:WUC) share their thoughts on the 2016 uranium market and gives us their uranium outlook 2017.

INN: At the end of last year what did you expect from 2016?

TOC: We had decent hopes for a recovery in uranium market albeit measured.

CP: The resource sector had been in the worst downturn seen in decades at the end of 2015, and we were seeing classic bottom of market events: capitulation of whole sectors; majors selling large assets cheaply; generalists funds leaving the sector; commodity prices at multi-year lows. So we knew we were somewhere near the bottom of the cycle. Being a cyclical business, where low prices are the best cure for low prices, we thought a bounce in the industry wouldn’t be far off.

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