Uranium.....Olympic Dam..... in Abundance....5 Nov 2021 08:24
Nice post carribs.... Found this .... We forget that Olympic Dam mine... Next door have a shed load of Uranium....
Sure We do too... Food for thought hey... ?
Uranium to regain its glow
STAFF WRITER
10 hours ago
2
SHARES
Uranium
There is strong incentive that the uranium price is on the verge of bouncing back as contracts and supply begin to run thin across the globe, paving the way for new sources in Australia to come online.
It is well documented that the Fukushima disaster significantly impacted uranium prices in 2011, forcing many mines into care and maintenance.
However, both the industry and analysts alike have predicted a resurgence in the spot price of yellowcake.
Uranium, which powers nuclear reactors as a zero-emission energy source, remains a key part in the world’s clean energy transition in regions such as Europe.
“With uranium, you use 300 times less space than a wind farm to produce the same amount of energy, while also requiring less materials when constructing a nuclear plant compared to solar or wind farm,” L2 Capital managing partner and senior portfolio manager Marcelo Lopez tells Australian Resources and Investment.
Despite its benefits, the uranium price has remained low for around 10 years as miners and investors wait for the next nuclear fuel cycle.
This cycle can be broken up into four stages, including uranium mining, conversion, enrichment and fuel fabrication.
Lopez says power utility companies are working backwards from fabrication to uranium, which led to dwindling commodity demand.
“There was a big bottleneck in the conversation market and a lot of uncertainty in the enrichment market,” he says. “No one wanted to buy uranium, because there was no conversion or enrichment.”
With the bottleneck fading, utilities companies are now starting to return to the market seeking long-term contracts as their carry trade purchases dry up.
In July, global asset manager Sprott finalised its deal with Uranium Participation Corporation to form the Sprott Physical Uranium Trust, which has become the world’s largest publicly listed physical uranium fund. It went live in mid-August.
The company, which has predominately dealt with precious metals, has experience in launching a gold fund and superfund over the past decade.
Lopez believes this is the single most important change in the uranium market in the second half of this year.
“Sprott has a lot of experience in commodities with over 200,000 clients worldwide,” he says.
“The most important thing is that they are doing ATMs (At The Market) which is a way for Sprott to sell shares to the market and use the money to buy physical uranium.”
Within four days of Sprott launching the uranium trust, 900,000 pounds of uranium were purchased with the spot price rising by 11 per cent to $US32.25 ($43.77) per pound within four days of operation.
According to Canaccord Genuity Capital Markets, Sprott is shifting the momentum of uraniu
Sign In
Follow the stocks
