• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 17 mins EU has already lost the Trump vs. EU Trade War
  • 2 hours Judge Orders Trump To Release Tax Returns
  • 4 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 16 mins Err ... but Trump ...? #Eggbox
  • 3 hours China's Renewables Boom Hits the Wall
  • 3 hours Offshore SE Asia: Offshore OFS Could Get Major Boost in SE Asia
  • 1 hour The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 3 hours Saudi Aramco IPO Will Not Save Kingdom
  • 5 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 8 mins CHK Trading @ 90 Cents
  • 17 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
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
Download on the App Store Get it on Google Play