For those that are not aware why Uranium spiked today
Cameco’s announcement to shut down the McArthur River mine, is big catalyst for the uranium sector. This is the world’s largest operating uranium mine, ~10% global production, coming offline. Much bigger news than when Cameco’s Cigar Lake mine flooded in 2006 (at the time that was development stage) but that was the beginning of a major uranium rally. UEC has been saying this all along, no mine on the planet can make money at $20/lb. uranium, and this announcement is the ultimate validation of this point. The McArthur River Mine and Key Lake Mill complex are collectively the world’s largest uranium operation and a shutdown of this magnitude cannot be over-emphasized.
The impact on spot uranium prices was volatile today and immediate. UEC has been describing the complacency of the utility fuel buyers despite their looming 1 billion pounds of uncommitted demand. This news should shake them out of a wait and see mode regarding their procurement strategies. Very positive news for UEC who are well positioned to capitalize on such a long-awaited development.
Also, Westinghouse has also just announced that they they have reached a deal to sell six AP-1000 reactors to China.
Note that the offer price on UxC BA is now over $23.00 USD.
Should be an interesting day tomorrow.
$UEC
