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https://www.fnarena.com/index.php/2021/02/16/uranium-week-multipl...

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    https://www.fnarena.com/index.php/2021/02/16/uranium-week-multiple-tailwinds-for-uranium/

    Weekly Reports | Feb 16 2021
    While the uranium spot price continues to move in a tight range, Cameco remains positive about long-term fundamentals for the uranium market.
    -Demand for uranium is rising just as supply becomes uncertain
    -The US returns to uranium conversion industry after five–year hiatus

    -Uranium spot price falls marginally
    By Mark Woodruff
    Speaking at the company’s year-end results presentation, President and CEO of Cameco, Tim Gitzel, remained positive about the long-term fundamentals in the uranium market.
    He noted momentum is building towards non-traditional nuclear, such as small modular reactors and advanced reactors as well as recognition of nuclear energy's role in the production of low-carbon energy for the production of hydrogen and desalination.
    This is occurring as countries and companies around the world are making net-zero commitments. This includes the US, where the new administration has expressed support for maintaining the existing domestic nuclear power fleet and the construction of advanced reactors, as well as recommitting to the Paris Agreement.
    Also, "demand for uranium is rising at precisely the same time that supply is becoming less certain. We know that utilities have not been replacing what they consume annually under long-term contracts," Gitzel said. "This has led to a growing wedge of uncovered uranium requirements."
    Citing data from market research company UXC, he said “the base case projects an annual shortfall of almost 100m lbs by 2035. That means the world needs to discover, develop and commission about six McArthur Rivers or Cigar Lakes in the next 15 years. Given the timelines it takes, we should be investing now.”
    Regarding Cameco’s operational performance, Gitzel explained production at Cigar Lake mine remains suspended with “lots of question marks” regarding the timeframe for recommencement. The suspension is due to uncertainties about access to qualified operational personnel caused by the pandemic and a commitment to protecting the health and safety of workers, their families and the broader community.
    Gitzel insisted that they don’t want to “yoyo” production at Cigar Lake by risking a premature recommencement of operations. He noted they were waiting for the vaccine rollout whilst maintaining close contact with the public health authorities and indigenous community leaders.
    Due to precautionary production suspensions at its operations, Cameco produced only a 5mlbs in 2020. Gitzel noted that it was too early to say if there would be an impact on 2022 production guidance at Cigar Lake. Should the Canadian vaccine be a pre-requisite for restarting Cigar Lake, recommencement may be delayed well into 2021.
 
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