Rollercoaster ride of the uranium market - 2020 will be better
What a first quarter of 2019 uranium investors experienced. First the price of the energy source went up, then down. First, they were able to rub their hands together when the price reached an annual high of a good 29 US dollars per pound (454 grams). The price was driven by the expectation that the US government would declare a national quota for domestic uranium supply via paragraph 232. But the signature was delayed. Nevertheless, it is still expected by market observers.
But this also brought about the abrupt fall in the price of spot uranium. At the end of March, uranium was trading just below USD 25 again. Ironically, this movement was also due to Section 232 of the law. Because industry insiders say that some of the utilities - who all have uranium reserves - will not sign any new purchase contracts until they know what Trump will do. Not much has changed in this situation so far.
But in the long term, the uranium price is unlikely to remain at the low level. For example, Cameco, one of the world's leading uranium producers, has stopped or reduced production at some of its mines. In order to fulfil supply contracts Cameco has to buy on the market, some industry experts want to know. In fact, lower global production meeting robust demand could drive the uranium price back up. This would benefit the price of uranium shares. Fission 3.0 and Uranium Energy count for a long time.
Uranium Energy is even likely to become a direct beneficiary of Article 232 if President Trump should lower his pen stroke - https://www.commodity-tv.com/play/uranium-energy-is-uniquely-positioned-for-uranium-price-growth/. The Canadians own ISR projects in Texas as well as a fully licensed processing plant. In addition, there is an ISR project in Wyoming and other uranium projects.
Fission 3.0 is active in the Athabasca Basin in Saskatchewan, famous for its high-grade uranium deposits, and is working on several uranium projects there - https://www.commodity-tv.com/play/fission-30-exploring-multiple-uranium-assets-in-the-athabasca-basin/. The high quality of the area was recently reflected in the successful results that Fission 3.0 was able to report.
Latest company information and press releases from Uranium Energy (https://www.resource-capital.ch/en/companies/uranium-energy-corp/) and Fission 3.0 (https://www.resource-capital.ch/en/companies/fission-30-corp/).
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