• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 18 mins Would bashing China solve all the problems of the United States
  • 7 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 2 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 hour Thugs in Trumpistan
  • 11 mins Pompeo's Hong Kong
  • 22 mins China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 1 day China to Impose Dictatorship on Hong Kong
  • 21 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 14 mins China’s Oil Thirst Draws an Armada of Tankers
  • 11 hours Income report showing potential future spending and economic growth
  • 4 hours Coronavirus hype biggest political hoax in history
  • 11 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 12 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 2 days 60 mph electric mopeds
What The Market Is Overlooking In The Occidental Deal

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Another OPEC Producer Looks To Back The Aramco IPO

Another OPEC Producer Looks To Back The Aramco IPO

As the world’s largest initial…

The Worst Oil Trades Ever Made

The Worst Oil Trades Ever Made

Wall Street is full of…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Here's Another Sign Uranium Prices Are Too Low

The recent rally in uranium prices appears to have stalled. With spot rates for uranium oxide taking their first drop last week since June--down $1 per pound to $35.50.

That ends a run that had seen the metal rise from as low as $28 over the summer. Leaving prices still at very low levels compared to rates seen over the last 10 years.

And that's having a notable effect on production across the uranium mining industry, judging from a key announcement last week from one of the biggest firms in the space.

Related: New Nuclear Fuel Rod Could Increase Output Of Existing Plants

The player in question is France's Areva. Which said that current uranium prices are too low to go ahead with one of the company's major development projects globally: the Kiggavik uranium deposit in Canada's northern Nunavut Territory.

Last week Areva announced that it has submitted a final environmental impact statement to local Nunavut authorities for a potential mine at Kiggavik. A key step in moving the project toward production.

But in the same news release, Areva said that uranium prices are too low to "favour a construction decision" for the project. Leaving the timing of mine building here uncertain.

The interesting thing is that Kiggavik is one of the best uranium development projects in the world right now. Especially outside of Canada's high-grade Athabasca Basin.

Related: We Haven't Seen This in Uranium For Years

All told, the project hosts a massive resource of 130 million pounds of uranium oxide--at a grade of 0.23% uranium, one of the highest for any development project globally.

But even with these leading metrics, Kiggavik still appears to be a no-go at current uranium prices. Implying that few other projects are going to be economic in today's industry environment.

That's a challenge for the business. And a positive signal for investors--when a sector can't afford to bring on new supply, it's usually only a matter of time until supply starts to run short.

Here's to getting things built,

Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News