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Uranium lit up today. Kazakh production cuts are the central reason.
(Also: supply constraints and international events — below)
Uranium shares as tracked in North America (URA stock index) rose 6% Friday.
Kazatomprom, world’s largest uranium miner, reduced its 2025 output forecast to 26,500 metric tons from 31,500 tons.
Inventories are sinking like a ship. Sales are outrunning production this year. Profits are rising as rising spot prices for the nuclear fuel gain this year.
Yet sulphuric acid needed to draw uranium from the earth is in short supply. Also reining in output: delayed mine rehabs, roads and facilities at several properties.
Some uranium explorers and producers in the USA — Cameco, Denison Mines, NexGen Energy — rose as much as 11% for the day. Uranium Energy Corp. shares UEC rose 13% and aniter 2% after hours; UEC this week said it it restarted production of the fuel at a Wyoming plant.
The spot uranium price Friday rose $1.
Here is a uranium hed-rip from UC Headline News:
| TVA Board Approves Additional $150 Million in Advanced Nuclear Funding |
| Nuclear power heating plant approved to be built in Jiangsu |
Further comments from our trusted U-sources:
“This helps underline the fact that the industry cannot rely on new supply coming on stream, and this at a time that we continue to have a uranium supply deficit.” — Daniel Major of GoviEx Uranium GXU
Cory Belyk, a geologist and CEO at CanAlaska, explains the days of cheap and easy production from Kazakhstan deposits may be a thing of the past … “if (presumably) their next best new zones are challenged by geology (i.e., carbonate in the system = major acid consumer) coupled with what one may assume are decreasing head-grades from their current production centers (hence need for more acid).”
Beyond the Kazakhstan news, Cory says, Serbia “further energized the nuclear space with what appears to be a shift in nuclear direction. Countries are clearly revisiting their energy needs and nuclear is becoming increasingly accepted. I will be watching the Australia political shift in the near-term.” See: Serbia ban shift
“Similar to what we saw in 2023 with the subsequent major rally going into year end. The fundamentals for the commodity are very compelling and any supply-side issues have an immediate impact on the market as we are seeing today. — Jordan Trimble of Skyharbour Resources
Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.