A new uranium bull market is well under way.
After bottoming out around $23.90 in March 2020, prices are now up 42% at $34.05. There may be even more upside thank to mine closures and support from President Trump.
With the coronavirus still making the rounds, it’s forced production to decrease at some of the world’s biggest mines. In Kazatomprom, for example announced it would reduce operations for about three months. “As the impact of COVID-19 continues to be felt around the world, Kazakhstan has taken strong steps to slow the spread of the virus,” said Kazatomprom CEO Galymzhan Pirmatov, as quoted by Nuclear Engineering International.
Cameco also closed down uranium production at Cigar Lake on coronavirus concerns.
Giving an extra boost to the uranium sector, the Trump Administration outlined plans to revitalize the U.S. nuclear energy market. A report from the Nuclear Fuel Working Group argues that “measures to buoy the struggling companies will allow for a rebirth of nuclear power in the U.S. while disrupting China's and Russia’s hold on the overseas market for reactors,” as quoted by The Hill. Such news is creating a good deal of opportunity for companies such as IsoEnergy Ltd. (TSXV:ISO)(OTCQX:ISENF), ), Ur-Energy Inc. (NYSE:URG), Energy Fuels Inc. (NYS:UUUU), Cameco Corp. (NYSE:CCJ), and NexGen Energy Ltd. (NYSE:NXE).
IsoEnergy Ltd. (TSXV:ISO)(OTCQX:ISENF) BREAKING NEWS IsoEnergy Ltd. recently reported final assay results from the winter 2020 drilling program at the Hurricane zone. Discovered in 2018 at the Larocque East property, the Hurricane zone is a recent discovery of high-grade uranium mineralization. Larocque East is 100% owned by IsoEnergy and is located in the prolific Eastern Athabasca Basin of Saskatchewan.
Some of the top highlights of that drilling program included notes that Drill hole LE20-52 assays average 22.7% U3O8 over 7.5m from 318.5 to 326.0m, including 67.2% U3O8 over 2.5m from 322.5 to 325.0m; Drill hole LE20-53 assays average 11.7% U3O8 over 10.5m from 317.5 to 328.0m, including 40.4% U3O8 over 3.0m from 324.5 to 327.5m.
According to Craig Parry, IsoEnergy Ltd. CEO on April 15, 2020, “Drilling has continued to deliver long intervals of high-grade pitchblende uranium mineralization, confirming Hurricane as major discovery. It is worth noting that the Hurricane deposit is in an exceptional location in the eastern Athabasca close to key infrastructure and only 40km from Orano’s McLean Lake Mill. These latest results from our winter program come at a crucial time for the uranium exploration and mining sector.”
“In recent days we have seen the major producers announce extended closures of their mines and mills which we estimate has reduced global uranium production volumes by over 50%. Already we have seen the uranium spot price rise over 30% from $24/lb three weeks ago to $31.50/lb today, breaking the important psychological barrier of $30/lb in the process. This rise has occurred without the full impact of physical product being removed from the market and when these announced supply cuts take full effect in coming weeks, we expect to see further upward pressure on prices. Against this backdrop IsoEnergy remains well positioned with $3.5m in cash and we look forward to reporting on plans for further drilling at our high-grade Hurricane discovery,” he added.
In addition, the company also just announced the acquisition of over 46,000ha of new uranium exploration claims divided amongst four properties in the prolific Eastern Athabasca Basin of Saskatchewan. The highlight is the 31,800ha Evergreen property located along the southeast rim of the Athabasca Basin, just 16km west of the Key Lake uranium mill. All of the new claims are 100% owned by IsoEnergy.
Other related developments from around the markets include:
Ur-Energy Inc. (NYSE:URG) announced that the United States Nuclear Fuel Working Group established by President Trump released its report today detailing the steps required to revitalize the domestic uranium mining and broader nuclear industries. In January 2018, the two legitimate remaining U.S. domestic uranium producers, Ur-Energy USA Inc. and Energy Fuels Resources (USA) Inc., filed a Section 232 Petition with the Department of Commerce seeking an investigation into the impact of uranium imports on national security. As a direct result of the ensuing investigation, in July 2019, President Trump took action to establish the NFWG to “examine the current state of domestic nuclear fuel production to reinvigorate the entire nuclear fuel supply chain.”
Energy Fuels Inc. (NYS:UUUU) reported its financial results for the quarter ended March 31, 2020. "Energy Fuels continued to be the clear leader in the U.S. uranium space during Q1-2020. We received excellent news from the U.S. government in February when President Trump published his Budget for fiscal year 2021, which seeks appropriations totaling $1.5 billion over the next 10 years to create a new strategic U.S. uranium reserve. Then, on April 23, 2020, the long-awaited report of the Nuclear Fuel Working Group was released, which demonstrated the U.S. government's strong commitment to restoring U.S. nuclear energy leadership and reviving and strengthening the U.S. uranium mining industry. Energy Fuels has taken the leading role in obtaining the U.S. government's support for U.S. uranium miners, spending more time and money on this initiative than any other U.S. uranium miner. And, this makes sense, since we have been the largest U.S. uranium producer since 2017, our assets have produced 34% of all U.S. uranium since 2006, and we have more proven facilities, more permitted resources, and more production capacity than any other U.S. miner. We believe that Energy Fuels should be a major beneficiary of any U.S. government support for the industry. We look forward to working with the U.S. government to ensure their initiatives to support domestic uranium production are successful and taxpayer dollars are spent wisely.”
Cameco Corp. (NYSE:CCJ) reported its consolidated financial and operating results for the first quarter ended March 31, 2020 in accordance with International Financial Reporting Standards (IFRS). “We are living in unprecedented and challenging times.” said Tim Gitzel, Cameco’s president and CEO. “The impact of the coronavirus (COVID-19) pandemic has changed the world.“For more than 30-years protecting the health and safety of our employees, their families and their communities and supporting local businesses has been a priority for us. That is why, consistent with our values, we have made a number of proactive decisions to protect our employees and their communities, and to help slow down the spread of the virus. Despite the disruptions to our operations as a result of COVID-19 and the prudent decisions we have made, we expect our business to be resilient. We will continue to provide the fuel required to power the nuclear reactors that will be part of the critical infrastructure needed to ensure hospitals, care facilities and other essential services are available during this pandemic.
NexGen Energy Ltd. (NYSE:NXE) provided an update on the operational and corporate impacts of the COVID-19 pandemic on its planned activities. Firstly, the Company is pleased to report that no confirmed or suspected cases of COVID-19 within the organization have been identified. Strong measures and proactive steps were immediately implemented in accordance with those recommended by Provincial (both B.C. and Saskatchewan) and Federal Health Authorities. The safety of the Company's employees, contractors, consultants and communities is always the first priority. NexGen confirms that all of the assets of the Company including at the 100% owned Rook I site and the offices (in Saskatoon and Vancouver) are secure and operational in accordance with the Federal and Provincial Health Authorities guidelines. With the current and forecasted impacts due to COVID-19, NexGen has conducted a detailed review of all corporate, operational and community aspects including the planned work programs on the Feasibility Study ("FS") and Environmental Assessment ("EA"). It is clear the working environments and practices of the Company and its key consultants, for an indeterminate period of time, are impacted in terms of the ability, collectively, to safely complete certain work programs. As a consequence, the Company has postponed "yet to commence" work programs associated with both the FS and EA. Previously commenced "in progress" work programs (including environmental monitoring and community programs) are continuing where it has been assessed the function is not impacted by the current Health Authority guidelines. A rescheduled timeline for the FS and filing of the Environmental Impact Statement will be communicated once the Company and its consultants establish a return to normalized working conditions. In the interim, all workflows will continue to be optimized in light of the current health and economic climate.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement between Winning Media and IsoEnergy Ltd. Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for IsoEnergy Ltd. We own ZERO shares of IsoEnergy Ltd. Please click here for full disclaimer.
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