If Perthnow is reporting on it then it is no longer obscure haha
https://www.perthnow.com.au/business/depressed-uranium-market-on-the-cusp-of-recovery-as-push-to-mitigate-climate-change-gathers-urgency-c-3593271
Diggers & Dealers 2021: Depressed uranium market ‘on the cusp of recovery’ on climate change urgency, says Boss EnergyRebecca Le MayNCA NewsWireAugust 4, 2021 1:03PMTOPICSBusinessNewsNT NewsRegional WAQLD NewsTAS NewsMiningVIC News
The uranium industry is “on the cusp of recovery” after a long period of post-Fukushima depression, a mining executive says, predicting prices could “go ballistic” as the world re-embraces nuclear power in the push to mitigate climate change.
Boss Energy chief executive Duncan Craib told the Diggers & Dealers Mining Forum in Kalgoorlie-Boulder on Wednesday there was “a hell of lot of activity going on off-market” and predicted uranium oxide prices would rebound strongly, with the spot price sitting at $US32.50 per pound currently, up from below $US28/lb in March.The company holds the Honeymoon mine north-west of Broken Hill in South Australia, which was mothballed in 2014 when uranium prices had tanked in the wake of the 2011 disaster in Japan.
Boss says Honeymoon is one of a few advanced uranium projects ready to take advantage of market improvement, with export permitting renewed in 2019 and an existing solvent extraction plant that can get going within 12 months following a decision to mine.Boss bought Honeymoon from Canada’s Uranium One in 2015. The mine produced about 335 tonnes of uranium oxide from 2011 to 2012. Credit: News LimitedThere are only two uranium mines operating in Australia following the closure of Ranger in the Northern Territory in January – Olympic Dam and Beverley, also in South Australia.“Honeymoon is destined to be the third and by that, Australia’s next uranium producer and one of the first worldwide to come back into production,” Mr Craib told delegates.
“There is something happening right now in the uranium market.“Over the coming months, we expect to see the spot price continue to increase in value and utilities to enter more into contracting … prices have gone and can go ballistic.
“The past six months have been absolutely transformational for the industry and one of the key drivers … is the increasing recognition of climate change and how nuclear can sort of mitigate that climate change through its reduction in carbon emissions.The mine is 80km northwest of Broken Hill, near the SA/NSW border.
“We’re seeing legislation being codified in some of the most developed world, with the US, the UK, South Korea and Japan all committing to carbon-free emissions by 2050 and China, for that matter, by 2060.”He said industry analysts and world governing bodies such as the World Nuclear Association had for many years called for new uranium mines, but the incentive price for producers was $US60/lb – the minimum needed bring new mines on.
“Since February, we‘ve seen over $1bn worth of investment into uranium equities and that’s set to grow,” Mr Craib said.“It would appear that the market’s quiet – why isn’t the spot price yet taking off?“
What I can report is that there is a lot a hell of a lot of activity going on off-market and right now, buyers are renegotiating contracts … and that, in our experience, is generally a precursor to more general contracting with which we’ll be entering into.The processing plant operating at night.
“We certainly expect to see more visible contracting as we go towards the end of the year, or possibly earlier if pricing starts to rise and looks sustainable.“We believe that prices will rise to the mid $US30s to the high $US30s on a spot price level by the calendar year end.”
- Forums
- ASX - By Stock
- VMY
- Upcoming Approvals
Upcoming Approvals, page-219
-
- There are more pages in this discussion • 38 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add VMY (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
SER
STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
David DeTata
Managing Director
SPONSORED BY The Market Online