Is Uranium Making a Long-term Bottom?

BNN recently spoke with Chris Jones, president and CEO of Uranium Resources, who discussed the pros and cons of investing in the uranium sector.

According to Chris:

  • There are two parts to Japan’s nuclear restart equation as not all 48 will start right away. Sixteen licenses are under consideration by Japanese authorities and we expect as many as 6 reactor restarts this year.
  • Politically, this is a powerful statement that the first restarts will definitely happen with others to follow.
  • As for the demand picture, there still remains an overhang of uranium on the market.
  • Japan’s message to the markets is, We will be consuming uranium again.
  • We don’t know precisely how many pounds Japan has in stockpiles, but that will be important for the price.
  • Others have said that the oversupply will begin to diminish with the restart of Japan reactors, plus the end of the U.S.-Russia HEU agreement, plus many mines have curtailed production as a result of lower uranium prices.
  • The global demand picture looks good, too.
  • There are 63 nuclear facilities under construction around the world, and half of them are in China.
  • Worldwide, 400 reactors are online
  • New build represent a substantial increase in the consumption of nuclear power.
  • Confidence on these 63 plants getting build and beginning operation is high.
  • Then there are another 100 plus reactors at some stage of planning or design — we have confidence that at least some of those will also be built.
  • World is concerned about fossil fuel-based electricity.
  • There is general support for nuclear power at higher levels, even if neighbourhoods don’t like the idea of a nuclear power plant being built nearby.

Click here to view the full interview.