Uranium spot prices have crept up yet AGAIN. Flooding at Energy Resources of Australia’s (OTCPK:EGRAF) Ranger operation in Australia’s Northern Territory led to the company’s announcement of a force majeure. “Even before this Wednesday’s announcement, there were indications that the market price had risen,” wrote Editor Treva Klingbiel in the March 9th edition of Nuclear Market Review. According to the nuclear utility industry trade magazine, bids were increased to purchase U3O8 equivalent at a higher price than the previous record of US$85/pound.
As a result of the increased response to a higher uranium price, industry consulting service TradeTech raised its weekly spot price indicator to US$90/pound. Nuclear Market Review [NMR] reported ERA’s force majeure on uranium sales contracts had ‘stunned the market.’
Incredible. Whats more incredible is the fact that we have been harping about uranium since early November and the spot price, as you can see, has surged to records. Again you have many uranium plays such as Cameco Corp. (NYSE:CCJ), but my personal pick is CanAlaska Uranium (OTCQB:CVVUF) (I am a small cap and micro cap investor. That doesn’t mean I wont dip into other investments, but that’s my particular niche).
With the current demand of uranium and now the second larger company seeing floods damaging their operations, the $100 spot price is not going to be far fetched. It’s very possible we might even see $105-$110 depending on how fast drilling can continue in large uranium rich locations such as Cigar Lake.