Yesterday, Cameco Corp. announced it was suspending production from the McArthur River mine in Saskatchewan, the world’s biggest uranium mine, by the end of January 2018 for 10 months. Cameco’s full press release can be seen here.
Cameco cited continued low uranium prices for their strategic decision. It is our belief here at Energy Fuels that this unexpected move can have a positive implication for uranium prices. Indeed according to TradeTech, the spot price of uranium rose $2.35 per pound yesterday on the news. There has been an overhang in supply which has plagued the uranium industry in recent years. Perhaps this suspension in production by Cameco will relieve pricing pressure the uranium industry has collectively been waiting for.
Steve Antony, CEO of Energy Fuels, added his thoughts on Cameco’s announcement: “We applaud Cameco for making this extremely difficult decision. It is no secret that uranium prices have been depressed in recent years, mainly due to persistent oversupply. The uranium market has seen similar dynamics in the past. Low prices caused production to drop significantly, setting the stage for the next price recovery. We believe that history might be repeating. The bottom line is that today’s prices do not incentivize current production – much less the new production we know the World will need in the future. Therefore, we would not be surprised to see additional production cuts announced by other producers in the coming months. A healthy uranium market will benefit miners, utilities, and consumers. No one knows when this market will ultimately recover. But, the things that need to happen are happening now.”
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This email contains certain “Forward Looking Information” and “Forward Looking Statements” within the meaning of applicable Canadian and United States securities legislation, which may include, but is not limited to, statements with respect to: the potential for Cameco’s production cuts to relieve pricing pressure, similar market dynamics occurring in the past and the potential for those dynamics to repeat, the incentive price for production, and the potential for further production cuts. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” “does not expect”, “is expected”, “is likely”, “budget” “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “does not anticipate”, or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “have the potential to”. All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: the potential for Cameco’s production cuts to relieve pricing pressure, similar market dynamics occurring in the past and the potential for those dynamics to repeat, the incentive price for production, and the potential for further production cuts; and the other factors described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K dated March 9, 2017, which is available for review on EDGAR at www.sec.gov/edgar.shtml<htt
Energy Fuels Inc.
Curtis Moore – VP – Marketing & Corporate Development
(303) 974-2140 or Toll free: (888) 864-2125