FinancialNewsMedia reported in late January, 2022 that a recent article in Investing News focused on the price of uranium for 2022. It said that:
"Uranium prices finally saw some positivity in 2021 after a decade-long trough. Where will they go from here? Uranium is an important fuel source for the nuclear energy industry. But prices have bottomed out in the past decade, with many investors wondering when the market will rebound. Driven by rising demand and massive supply disruptions, uranium prices shot up in 2007 from US$72 per pound at the start of the year to an all-time high of US$136.22 by early June. However, in the years since then, the spot price for uranium has mainly tracked downward on a steady slope. Since 2012 and through much of 2021, uranium prices traded under the key US$50 level, falling as low as US$18. However, in September 2021, the spot price for uranium shot up to a nine year high of US$50.80."
The report continued:
"When will uranium prices go up? Uranium prices are mainly influenced by aboveground mine supply and demand for nuclear energy. Analysts with a bullish lean believe the uranium market cycle has reached its bottom and that a break to the upside for uranium prices is supported by positive supply and demand fundamentals. On the demand side, nuclear energy generated from 445 reactors around the globe supplies about 10 percent of the world's energy requirements. China alone is constructing 16 new reactors, Russia is constructing three with another 11 planned and India has seven nuclear reactors under construction."
Active companies in the markets today include: Basin Uranium Corp., Denison Mines Corp., Uranium Energy Corp., Energy Fuels Inc., and NexGen Energy Ltd.
The World Nuclear Association's "Nuclear Fuel Report: Global Scenarios for Demand and Supply Availability 2021-2040" forecasts 2.6 percent annual growth in nuclear generation capacity over the next two decades…
"UxC estimates that by 2030 about two-thirds of utility nuclear fuel requirements will not be covered by contracts, and this will reach 81 percent in 2035. The lack of new uranium projects coming online is a considerable part of this equation. As utility inventories decline, they will come to market willing to accept higher contract prices to replenish their energy fuel stock, and secure future supply lines may happen sooner than later. Much higher long-term contract prices will in turn bring uranium spot prices along for the ride."
High riders in the uranium mining companies include:
Basin Uranium Corp. is expending efforts to acquire the Wray Mesa Uranium Project in Utah and recently announced that they have entered into a Letter of Intent to acquire a 100%-interest in the Wray Mesa project in Utah. The Wray Mesa project is comprised of 310 unpatented lode claims totaling 6,219 acres located in San Juan County, Utah. The Property is accessible via Utah State Highway 46 and unpaved Forest Service Roads, with access to power, water and proximal to the town of La Sal, Utah.
The Property is contiguous to and adjoins Energy Fuel's fully-permitted and production-ready La Sal project which includes a number of past-producing uranium and vanadium mines (production of 550,000 lbs U3O8 in 2012). The La Sal project hosts Measured & Indicated resources of 4.1 Mlb of uranium (U3O8) plus 21.5 Mlb of vanadium (V2O5) plus Inferred resources of 0.4 Mlb of uranium plus 1.9 Mlb of vanadium (source: March 25, 2104 Technical Report on La Sal District Project).
"We are excited to acquire the Wray Mesa uranium project which is located in a Tier-1 jurisdiction within the USA, which will benefit from US domestic green energy initiatives." commented Mike Blady, CEO of Basin Uranium. "The project has seen an extensive amount of past exploration, with over 495 holes drilled dating back to the late 1970's, and is located next to one of the premier US-focused uranium producers, Energy Fuels. The extensive past exploration should allow our exploration team to quickly design an exploration program to follow-up on a number of the high-grade historic intercepts."
See the Basin Uranium's full press release by going to: https://basinuranium.ca/news/
In other industry news and developments of note in the markets this week:
NexGen Energy Ltd. recently announced that the Company has awarded the engineering, procurement, and construction management contract for the FEED stage of the Rook I Project to Hatch with work well underway. Hatch is a global leader in project management and engineering with extensive experience delivering mining projects in Saskatchewan and across Canada. Following the successful completion of the Rook I Feasibility Study in February of this year, NexGen is transitioning into the next stage of advanced project development with the commencement of FEED. In line with the optimized project execution strategy, the FEED stage will advance overall engineering to a 40-45% level of completion with associated cost estimate, fully define long-lead procurement actions, and further refine execution planning to prepare the Project for the pending construction stage. This FEED stage is scheduled for completion in Q3 2022 and will be undertaken concurrently with the engagement, Environmental Assessment and Licensing workstreams.
Energy Fuels Inc. recently announced the execution of a Memorandum of Understanding with Nanoscale Powders LLC for the development of a novel technology for the production of rare earth element metals. They have concluded that this technology, which was initially developed by NSP, and will be advanced by the Company and NSP working together, has the potential to revolutionize the rare earth metal making industry by reducing costs of production, reducing energy consumption, and significantly reducing greenhouse gas emissions. Producing REE metals and alloys is a key step in a fully integrated REE supply chain, after production of separated REE oxides and before the manufacture of neodymium iron boron ("NdFeB") magnets used in electric vehicles, wind generation and other clean energy and advanced technologies.
Uranium Energy Corp. recently announced the Company has completed the transactions contemplated in the definitive share purchase agreement with Uranium One Investments Inc., a subsidiary of Uranium One Inc., and has acquired all of the issued and outstanding shares of Uranium One Americas, Inc. for a total purchase price of $112 million in cash together with an additional $2.9 million in estimated working capital (primarily pre-paid insurance and land payments) and the assumption of $19 million in reclamation bonding. Uranium One is the world's fourth largest uranium producer and part of Russia's State Atomic Energy Corporation, Rosatom. The Acquisition was fully funded with UEC's existing cash on hand. Subsequent to closing, UEC holds approximately $120 million of cash and liquid assets.
Denison Mines Corp. recently reported that the Canadian Nuclear Safety Commission has approved an amendment to the uranium mine and mill license for the McClean Lake Operation to allow for the expansion of the JEB Tailings Management Facility. David Cates, Denison's President & CEO, commented "The McClean Lake mill remains a strategically significant asset in the Athabasca Basin region – representing the only uranium milling facility currently operating in Canada. The amendment to the operating license for the McClean Lake Operation allows for the expansion of the TMF, such that the facility will be well positioned to serve as a regional milling center for current and future uranium mining projects in the eastern portion of the Athabasca Basin for many years to come.
Managed & Built by I2M Consulting, LLC | © 2010-
