RE: Time to get back into FRES28 Jan 2024 20:33
That's part of why the Uranium producers were so unloved 2 years ago
They were selling u3o8 at $20 when it was costing them $60 to produce.
Everyone was saying at that time that they needed to get their costs under control and that there was plenty of inventory around.
All the surplus disappeared rapidly and then it was a case that unless the uranium price rose rapidly (I.e 500%) to not only cover the cost of production but allow the producers to both make a profit and additional margin ontop to develop future deposits into production then there was a risk of supply side drying up.
Even with the dramatic rises seen in spot u308 the sector is not out of the woods just yet.
However, given the price rise, its now going to enable some of those deposits that weren't economical to be brought into production.
That said as it takes years to bring on a new mine so the existing uranium producers should be set fair and no doubt the smaller speculative exploration plays will be coming back into focus this year.