• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Shale Oil Fiasco
  • 19 hours Everything you think you know about economics is WRONG!
  • 1 day Global Debt Worries. How Will This End?
  • 16 hours Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 28 mins Natural Gas
  • 3 hours USA v China. Which is 'best'?
  • 3 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 1 day Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 2 days My interview on PDVSA Petrocaribe and corruption
  • 2 hours Aramco Raises $25.6B in World's Biggest IPO
  • 4 hours Winter Storms Hitting Continental US
  • 2 days Quotes from the Widowmaker
  • 1 day Tesla Launches Faster Third Generation Supercharger
Alt Text

This Key Battery Metal Is Set To Soar By 250%

Copper prices surged to a…

Alt Text

Chinese Rare Earth Exports Tumble As Trade War Accelerates

China, the world’s largest producer…

Alt Text

World's Second Largest Lithium Miner Is Reeling From Low Prices

The world’s second largest lithium…

Dave Forest

Dave Forest

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

More Info

Premium Content

Investing In Uranium? This News Will Shock You.

There's a sense among some investors that uranium is a contrarian buy today. With prices languishing near decade lows, and multiple projects globally having shut their doors over the last few years.

But news this week sounds a note of caution for anyone investing here.

That comes from the world's largest uranium-producing nation, Kazakhstan. Where it appears the downtrodden state of the market hasn't put a dent in output.

Local press reported that Kazakhstan's uranium production for Q2 actually rose 4% as compared to the same period of 2014. Hitting a total of 5,883 tonnes. Related: Is This The Best Play In U.S. Oil?

That's an increase of 233 tonnes -- or over 500,000 pounds -- for the quarter. Annualized, that means Kazakhstan is pumping out 2 million pounds more uranium than it was last year.

And that's a critical observation. Because it shows the uranium "downturn" isn't affecting the entire sector evenly.

Especially Kazakhstan. Which is one of the world's lowest-cost production centers for uranium -- thanks largely to the geology of the massive deposits here.

And as this week's news shows, Kazakhstan's producers are doing just fine at today's prices. Even pushing forward with production expansions. Related: How Much Pressure Will Iran Put On Oil Prices?

Same goes in the world's other big uranium district -- Saskatchewan, Canada. Where major producer Cameco reported late last month that its production is also rising significantly.

Cameco's uranium output during Q2 jumped 35% as compared to the year-ago period. Thanks to its new Cigar Lake mine coming online, as well as rising output from its cornerstone McArthur River mine.

These mines are some of the richest in the world, and have market-leading economics. Allowing Cameco to ramp up output even at $35 uranium. Related: Germany Struggles With Too Much Renewable Energy

Canada and Kazakhstan are in fact unique globally when it comes to uranium production. With most of the world's additional mine capacity coming at much higher production costs.

It's those higher-cost mines that have been going out of business lately, in places like Africa and Europe. And the news above shows that betting on these swing producers to return may not bear fruit any time soon.

Bottom line: there are opportunities in uranium, in very specific places on Earth. Choose your spots carefully.

Here's to ramping up,

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