Apr 9, 2020
Big Uranium Price Jumps Due to Worldwide Production Cuts
UEC President & CEO Amir Adnani, discusses recent market developments with Swiss Resource Capital AG.
- Over the past two weeks, the uranium market has experienced a significant supply shock from the COVID-19 pandemic, resulting in a monthly production cut of over 50%.
- The black swan type event has been pushing the uranium price higher towards the $30 level, not seen since 2016.
- There is now no commercial uranium production of consequence in North America with Canadian and U.S. projects being taken or already offline.
- New demand from the U.S. government to build up a national Uranium Reserve appears imminent as was outlined in the Trump Administration FY 2021 budget announcement. The budget request includes a 10-year $1.5B program that would be used to purchase U.S. origin uranium and conversion services.
- Uranium Energy Corp is well positioned to contribute to this program with fully licensed, low cost, In-Situ Recovery projects.