A note on the current dynamic in the uranium market from Haywood Securities this morning:
“Uranium market conditions continue to suffer in the wake of Fukushima. The attrition of major projects in the global production pipeline will go some distance in correcting the demand supply imbalance in coming years. The uranium market has been in over-supply since before Fukushima (in anticipation of growing demand), resulting in significant global inventory build. We look for announcements like the above to act as catalysts for the sector, both in terms of the equities, and the uranium price itself.”
These comments came after a report that Energy Resources Australia (ERA-AU) has decided to halt plans for the completion of the final feasibility study of its Ranger 3 Deeps project in Australia’s Northern Territory. Announcements like this one will help to cement the bottom in a much downtrodden sector and pave the way for the resurgence of the sector’s survivors/thrivers such as CCJ, FCU.TO, and NXE.V.