The uranium market has showed a “marked” improved over the past year, Cameco (CCJ +9%) CEO Tim Gitzel says while cautioning that prices are still "nowhere near" the level needed to restart idled production capacity or consider new production opportunities.
Gitzel sees steady growth in demand, with 55 reactors under construction, but long-term opportunities are not yet acceptable to return suspended capacity to the market.
CCJ, which in July indefinitely suspended its McArthur River/Key Lake operations in Saskatchewan, reported better than expected Q3 earnings last Friday.
Significant production cuts, reductions in producer inventories and an increase in demand for uranium in the spot market have put pressure on uranium prices, with the current spot price up ~40% Y/Y; uranium hit $28.75/lb. on Friday, its highest level since March 2016.
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