After a decade-long bear market, uranium has suddenly turned into a raging bull in an otherwise dismal market for commodities. Uranium prices have surged 35 percent over the past 30 days to trade at $33.30/pound – a level they last touched four years ago – thanks to shutdowns of critical mines at Canada’s Cameco and Kazakhstan’s Kazatomprom, suppliers of more than half of the global uranium consumption. Bloomberg has quoted Cantor Fitzgerald as stating that the shutdowns have wiped out ~46 million pounds of uranium – good for 35 percent of annual global uranium output – over three weeks, in large part due to the coronavirus crisis. The rally comes at a time when the Trump administration appears hell-bent on reviving the country’s faltering uranium industry ostensibly in the pursuit of energy independence and also for national security purposes. But the third nuclear gold rush could be dead in the water amid low energy prices and stiff public opposition towards a sector that has increasingly fallen out of favor.
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