- Cameco's (NYSE:CCJ) pain could mean gains for other uranium companies after the company's suspension of some of its operations will cut global supplies of the commodity, which analysts say could be biggest catalyst for the sector since the 2011 Fukushima disaster.
- CCJ said yesterday it would suspend production at its McArthur River mining and Key Lake milling operations by the end of January, which could increase the uranium supply/demand balance and induce a sustainable and significant raise in uranium prices.
- McArthur River is the world’s largest uranium mine, and BMO analysts say its suspension should remove ~17M lb U3O8 from the market next year (12M lb attributable to CCJ), representing 12% of primary mine supply and 9% of estimated demand.
- CCJ -7.3% premarket, but uranium peers are sharply higher: UEC +20.9%, WWR +14.2%, URG +11.3%, DNN +6.6%,
- ETFs: URA, NLR
- Source: Bloomberg First Word
- Now read: Why I've Sold My Rio Tinto (LON:RIO) Shares
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